CAREER CHALLRNGE

Tim Huggins is the new director of human resources of Sprowl Manufacturing, a division of the MBTI Corporation. Tim wanted to start a job analysis program immediately. Six weeks after he took over; job analysis questionnaires (six pages each) were given to employees. The results were puzzling. Responses from e the operating employees (machinists, lift operators, technicians, draftspeople, and mechanics) were quite

different from responses from their supervisors about these jobs. The fact that supervisors viewed the jobs differently from those doing the work fueled Tim’s desire to do a job analysis. He wanted to study and specifically define the jobs so that misunderstandings, arguments, and false expectations could be kept to a minimum. The supervisors listed job duties as simple and routine. The operating

employees disagreed and claimed that their jobs were complicated and constrained by limited resources.They complained ‘ that work areas were hot, stuffy, and uncomfortable. These disagreements soon E became the basis for some a open hostility between supervisors and workers. Finally, Nick Mannis, machinist, confronted a supervisor, Rog Wilkes, and threatened to punch him over the “lies” Rog and other supervisors had

concocted in the job analysis. Tim was worried that the job analysis program was getting totally out of hand. He had to do something about it. Everyone was getting up in arms over a program Tim felt was necessary. Should a manager like Tim, who knows a lot about HRM, but who was not trained in the specifics of job analysis, undertake this kind of program?

Organizations have evolved because the overall mission and objectives of most institutions are too large for any single person to accomplish. Consequently, the organization must have a systematic way to determine which employees are expected to perform a particular function or task that must he accomplished. The cornerstone of the organization is, therefore, the set of jobs performed by its employees. These jobs, in turn, provide the mechanism for coordinating and linking the various activities of the organization that are necessary for success. As a result, studying and understanding jobs through the process known as job analysis is a vital part of any HRM program. job analysis provides answers to questions such as these:

How much time is taken to complete important tasks? Which tasks are grouped together and considered a job? How can a job be designed or structured so that the employee’s performance can he enhanced? What kinds of behaviors are needed to perform the job? What kind of person (in terms of traits and experience) is best suited for the job? How can the information acquired by a job analysis be used in the development of HRM programs?

This chapter claries the contributions made by job analysis to an organization’s HRM program and specific activities. Furthermore, the careful planning needed and the various techniques of a ob analysis program are highlighted. Finally,

the importance of job analysis in the design of jobs is discussed. The chapter shows that job analysis is a necessary part of HRM and in many respects is the foundation upon which all other 1-IRM activities must he constructed. As can be seen in the diagnostic model (see Exhibit 6—1), the nature of the work to be performed is one of the fundamental inputs into all major HRM functions. This is another way of saying that how workers’ responsibilities and duties are segmented helps to shape and determine virtually all other facets of organizational functioning. As such, understanding exactly what constitutes any particular job is critical to developing HRM activities that support the organization’s mission.

Before considering the process and techniques involved in job analysis, on should learn the language of job analysis. Although many of these terms are often used interchangeably by people who are unfamiliar with job analysis, the expert will Use them more precisely in order to avoid confusion and misinterpretation. Precision in the use of these terms is, in fact, required by federal and state legislation. it

is therefore important for the HR manager to use each of them in a way that is consistent with such legislation.

THE VOCABULARY OF JOP ANALYSIS

THE STEPS IN JOP ANALYSIS

The following definitions are consistent with those provided by the U.S. Employment Service and the U.S. Office of Personnel Management:2

Job analysis. A purposeful, systematic process for collecting information on the important work-related aspects of a job.3

Job description. The principal product of a job analysis. It represents a written summary of the job as an identifiable organizational unit.

Job specification. A written explanation of the knowledge, skills, abilities, traits, and other characteristics (KSAOs) necessary for effective performance on a given job.

Tasks. Coordinated and aggregated series of work elements used to produce an output (e.g., a unit of production or service to a client).

Position. Consists of the responsibilities and duties performed by an individual. There are as many positions in an organization as there are employees. Job. Group of positions that are similar in their duties, such as computer programmer or compensation specialist

Job family. Group of two or more jobs that have similar duties.

The 1ob analysis process involves a number of steps, which are outlined in Exhibit 6—2. As it appears in the exhibit, the process assumes that the job analysis is being conducted in an ongoing organization; in other words, an organization that is already in operation as opposed to a new venture.

Step I provides a broad view of how each job fits into the total fabric of the organization. Organization charts and process charts (discussed later) are used to complete step I. Step 2 encourages those involved to determihe how the job analysis and job design information will be used. This step is further explained in the next section. Since it is usually too costly and time-consuming to analyze every job, a representative sample of jobs needs to be selected. In step 3, jobs that are to he analyzed are selected.

Step 4 involves the use of acceptable job analysis techniques. The techniques are used to collect data on the characteristics of the job, the required behaviors, and the characteristics an employee needs to perform the job. The information collected in step 4 is then used in step 5 to develop a job description. Next, in step 6, a job specification is prepared.

The knowledge and data collected in steps 1 through 6 are used as the foundation for virtually every other HRM activity. As shown in Exhibit 6—2, these include activities such as recruitment, selection, training, performance evaluation, and compensation. The information gathered during job analysis is essential to each of these.

As is also shown in the exhibit, the information gathered is used in job design and redesign, which are discussed in detail later in this chapter. Job analysis provides information necessary for organizing work in ways that allow employees to he both productive and satisfied. Finally, information from job analysis can be used in an organization’s follow—up evaluations of its job design. At this step, it is important for an organization to evaluate its efforts and determine whether the goals of productivity and satisfaction are in fact being achieved.

HR managers, specialists, and managers in general know that job analysis has many T uses. Some of these individuals now believe that there is no longer even a choice A about whether job analysis should be conducted. Administrative guidelines accompanying various civil rights and EEO laws and judicial recommendations are clear. The question has become how to conduct a legally defensible job analysis rather than whether to conduct such an analysis at all.5 In terms of staffing and selection activities, job analysis plays an important role in the Uniform Guidelines on Employee Selection Procedures (1978), a set of policies designed to minimize or prevent workplace discrimination practices. The UGESP emphasizes that job analysis should be used when validating or assessing the accuracy of organizational selection procedures. In addition, job analysis is critical to assessments of discrimination under most employment-related laws, including the Civil Rights Act of 1991 and the Americans with Disabilities Act of 1990. Job analysis is linked with these discrimination laws through rulings from numerous Supreme Court decisions. The quality of job analysis conducted by an organization is frequently a primary determinant of whether it has acted properly.

On the basis of these court decisions, a good job analysis must provide the following if it is to be viewed favorably:

1. It should yield a thorough, clear job description. 2. The frequency and importance of task behaviors should be assessed. 3. It must allow for an accurate assessment of the knowledge, skills, abilities, and other characteristics (KSAOs) required by the job. 4. It must yield information about the relationship between job duties and these KSAOs. That is, it must clearly determine which KSAOs are important for each job duty. In addition to helping organizations satisfy their legal requirements, job analysis is closely tied to HRM programs and activities. It is used extensively in each of the following areas:

THE USES OF JOP ANALYSIS

1. Recruitment and selection. job analysis information helps recruiters seek and find the right persons for the organization. And, to hire the right person, selection testing must assess the most critical skills and abilities needed to perform a jo6. This information comes from job analysis. 2. Training and career development. Knowing the skills necessary for jobs is essential to building effective training programs. Moreover helping people to move efficiently from one career stage to another can only be accomplished with information from job analysis. 3. Compensation. Compensation is usually tied to the duties and responsibilities of a job. Thus, proper compensation demands accurate assessments of what various jobs entail. 4. Strategic planning. More and more, managers are beginning to realize that job analysis is another important tool in an organization’s overall strategic planning efforts. Effective job analysis can help organizations to change, eliminate, or otherwise restructure work and work flow processes to meet the changing demands of uncertain environments.

It should be obvious from this list that the potential uses of job analysis cover the entire domain of HRM activities. It is, in fact, difficult to imagine how an organization could effectively hire, train, appraise, compensate, or utilize its human resources without the kinds of information derived from job analysis. But the value of job analysis doesn’t end with HRM. Managers involved in virtually all aspects of planning, organizing, controlling, and directing in the organization also benefit from job analysis information.

The steps spelled out in Exhibit 6—2 suggest that care and planning are important features of any job analysis. Part of that planning should involve carefully choosing the people who will conduct the analysis. If an organization has only an occasional need for job analysis information, it may hire a temporary job analyst from outside. Other organizations will have job analysis experts employed full-time. Still other organizations will use supervisors, job incumbents, or some combination of these to collect job analysis information. Each of these choices has strengths and weaknesses. For example, job incumbents are a good source of information about what work is actually being done rather than what work is supposed to be done. In addition, involving incumbents in the job analysis process might increase their acceptance of any work changes stemming from the results of the analysis. On the other hand, job analysis should describe the work activities of a job independent of any personal attributes of a given job incumbent. Because incumbents tend to exaggerate the responsibilities and importance of their work, this objectivity might be difficult to achieve when incumbents conduct the job analysis. Thus, the choice of who should analyze a job depends on many factors, including the location and complexity of the jobs to be analyzed, how receptive incumbents might be to an external analyst, and the ultimate intended purpose of the results of the analysis.9 Regardless of who collects the information, the individuals should thoroughly understand people, jobs, aid the total organizational system. They should also have considerable knowledge about how work is expected to flow within the organization.

HRMEMO

Line managers, busy with their day-to-day responsibilities, may not always be able to find time to conduct job analyses. In cases like these, HR managers will need to convince line managers that their cooperation is critical.

WHO SHOULD CONDUCT THE JOP ANALYSIS?

THE USE OF CHARTS

HR JOURNAL REENGINEERING:

THE STRATEGIC JOB ANALYSIS CHALLENGS

company was able to eliminate 100 unnecessary field office positions. Similar efforts to streamline operations and make bureaucracy more efficient and less cumbersome are promised by Toyota Motor Corporation, the world’s fourth largest automobile manufacturer with 2001 sales of U.S.$ 106 billion and 215,000 employees. The initiative focuses on creating and implementing a new global standard for manufacturing which will attempt to realize new synergies between the company’s IT and production systems. The project will be aimed at Toyota’s North American parts supply network that includes 1,500 Lexus and Toyota dealers and its 450 suppliers. In order to make this project a reality, the company will need to redesign several existing jobs to support these new initiatives. Job analysis is likely to play an important role in this change process.

Sources: Michael Hammer (November—December 2001), “The New Business Agenda Strategy & Leadership, pp. 42—43; john Teresko (January 00 I), “Toyota’s New Challenge,” Industry Week, pp. 71—74; Michael Hammer (July—August 1990),”Reen6gineering Work: Don’t Automate, Obliterate’ Harvard Business Review, pp. 04--I 12; John Thackray (June 1993), “Fads, Fixes, and Fiction,’ Management Today, pp. 40—42; David Warner (October I 993), “Bureaucracy, Heal Thyself,” Nation’s & Business, pp. 66—68.

A 1990 Harvard Business Review article entitled, “Reengineering Work: Don’t Automate, Obliterate: introduced managers to the concept of reengineering. According to its author, Michael Hammer, the heart of reengineering is the need for organizations to break away from their traditional rules about work and from the assumptions that underlie how that work is efficiently accomplished. This requires a complete redesign of existing work into jobs that previously didn’t exist. Specifically, reengineering designs jobs around outcomes rather than tasks .This means that a single individual will be responsible for performing all aspects of a process rather than a limited subset of tasks. Mutual Benefit Life Insurance implemented a complete reengineering program several years ago. Their job analyses indicated that the application process included 30 separate steps that spanned five different departments. Typical turnaround time was between 5 and 25 days, with most of the time spent passing the application between departments. In response to this inefficiency, the company created a new job titled case manager. A case manager became responsible for the entire application process for any given individual. The reengineering doubled the volume work that was being completed; at the same time, the

The job analyst has to select the best methods and procedures available to conduct the analysis. However, even before this selection is made, an overview of the organization and its jobs is required. An overview provides the job analyst with an informed picture of the total arrangement of departments, units, and jobs. Additionally, this overview will provide the job analyst with a better understanding of the flow of work through the organization. To gain these useful insights about the structure and process of the organization, two types of charts are especially helpful. An organization chart presents the relationships among departments and units of the firm. The line functions (the individuals performing the work duties) and staff functions (the advisers) are also spelled out. A typical organizational chart will yield information about the number of vertical levels in the organization, the number of different functional departments, and the formal reporting relationships that exist.

METHODS OF DATA COLLECTION

A second type of chart, the process chart, shows how a specific set of jobs are related to each other.1° Thus, rather than simply showing the structural relationships among job titles (as iii a typical organizational chart), the process chart shows the flow of activities and work necessary to produce a desired product or service.

There are four basic methods, which can he used separately or in combination, of collecting job analysis data—observation, interview, questionnaires, and job incumbent diaries or logs. In each of these methods, the information about the job is collected and then the job is studied in terms of tasks completed by the job incumbent (person presently working on the job). This type of job analysis is referred to as job- oriented. On the other hand, a job can be analyzed in terms of behaviors or what the job incumbent does to perform the job (such as computing, coordinating, or negotiating). This is referred to as work-oriented job analysis. Both of these orientations are acceptable under the Uniform Guidelines on Employee Selection Procedures as long as they identify job duties and behaviors that are critical to performing the job.

The four methods—or any combination of them—must focus on critical information. Since time and cost are considerations, managers need to collect comparable, valid data. Consequently, some form of core information is needed no matter what data collection method is used.12 A professional job analyst typically conducts extensive interviews with incumbents and supervisors, collects records about the job, and, if feasible, directly observes the job incumbents performing the job.

A questionnaire called the job analysis information format (JAIF) can provide the basic core information for use with any job analysis method—observation, interview, questionnaire, or incumbent diary or log. It permits the job analyst to collect information that provides a thorough picture of the job, job duties, and requirements.

Job incumbents are asked to complete the JAIF. These answers (of course, some questions may not be answered or can’t be answered because the job incumbent doesn’t know the answer) are then used to specifically structure the data collection technique that will eventually be implemented. Exhibit 6—3 presents a portion of one type of JAIE

Differences among job incumbents should he considered during the analysis of JAIF information, in addition to the actual job analysis. The job analyst should not assume that all incumbents or their supervisors will view a job in the same way. A safeguard against developing a distorted picture of a job is for the job analyst to collect information from a variety of incumbents. The job analyst should probably try to get information from males and females, older and younger workers, and high- and low-performing incumbents (the research is mixed about whether there will he differences between them in terms of their view of the job). ‘ Finally, the job analyst should not assume that all incumbents and supervisors have the same amount of knowledge about a job. This is important because research indicates that too little knowledge about a job can lead to inaccurate job descriptions.

1-Observation

Direct observation is used for jobs that require manual, standardized, and short-job cycle activities. jobs performed by an inventory stockroom employee are examples of these. The job analyst must observe a representative sample of individuals performing these

JOB ANALYSIS INFORMATION FORMAT

Your Job Title _______________________ Code _________________ Date__________________ Class Title _________________________ Department __________________________________ Your Name _________________________ Facility______________________________________ Supervisors Title _____________________ Prepared by __________________________________ superior s Name_____________________ Hours Worked _____ _________ to ________________ 1. What is the general purpose of your job? What was your last job? If it was in another organization, please name it. 3. To what job would you normally expect to be promoted? 4. II you regularly supervise others, list them by name and job title. 5. If you supervise others, please check those activities that are part of your supervisory duties:

-Hiring -Developing -Directing -Disciplining -Orienting -Coaching -Measuring performance -Terminating -Training -Counseling -Promoting -Other ــــــــــــــــــــــــــــ -Scheduling -Budgeting -Compensating

6. How would you describe the successful completion and results of your work? 7. Job Duties—Please briefly describe what you do and, if possible, how you do it. Indicate those duties you consider to be most important and/or most difficult.

a. Daily duties—

h. Periodic duties (please indicate whether weekly, monthly, quarterly, etc.)—

c. Duties performed at irregular intervals—

d. How long have you been performing these duties?

e. Are you now performing unnecessary duties? If yes, please describe.

f. Should you be performing duties not now included in your job? If yes, please describe.

EXHIBIT 6-3

AM PM

AM PM

CONCLUDED

8. Education. Please check the blank that indicates the educational requirements for the job, not your own educational background.

a. ________ No formal education required d. _______ 2-year college certificate or equivalent.

b. _______ Less than high school diploma e. ______ 4-year college degree.

c. High school diploma or equivalent. F. _______ Education beyond undergraduate degree and/or professional license.

List advanced degrees or specific professional license or certificate required.

Please indicate the education you had when you were placed on this job.

9. Experience. Please check the amount needed to perform your job.

a. _______ None. e. _______ One to three years.

b. ______ Less than one month. f. ______ Three to five years.

c. _______ One month to less than six months. g. _______ Five to 10 years.

d. ______ Six months to one year. h. ______ Over 10 years.

Please indicate the experience you had when you were placed on this job.

10. Skill. Please list any skills required in the performance of your job. (For example, degree of accuracy, alertness, precision in working with described tools, methods, systems, etc.)

Please list skills you possessed when you were placed on this job.

11. Equipment. Does your work require the use of any equipment? Yes _____ No _____ If yes, please list the equipment and check whether you use it rarely, occasionally, or frequently.

Equipment Rarely Occasionally Frequently

a. ________________ __________________ __________________ __________________

b. ________________ __________________ __________________ __________________

c. ________________ __________________ __________________ __________________

d. ________________ __________________ __________________ __________________

EXHIBIT 6-3

jobs. Observation is usually not appropriate where the job involves significant mental activity, such as the work of a research scientist, a lawyer, or a mathematician.

The observation technique requires that the job analyst be trained to observe relevant job behaviors. In conducting an observation, the job analyst must remain as unobtrusive as possible. He or she must stay out of the way so that the work can he performed.

2-1lnterviews Interviewing job incumbents is often done in combination with observation. Interviews are probably the technique used most widely in collecting data for job analysis. They permit the job analyst to talk face to face with job incumbents. The job incumbent can ask questions of the job analyst, and this interview serves as an opportunity for the analyst to explain how the knowledge and information gained from the job analysis will be used.

Interviews can be conducted with a single job incumbent, with a group of individuals, or with a supervisor who is knowledgeable about the job. Usually a structured set of questions will be used in interviews so that answers from individuals or groups can be compared.

Although interviews can yield useful job analysis information, an awareness of their potential limitations is also needed. Interviews are difficult to standardize—different interviewers may ask different questions and the same interviewer might unintentionally ask different questions of different respondents. There is also a real possibility that the information provided by the respondent will he unintentionally distorted by the interviewer. Finally, the costs of interviewing can he very high, especially if group interviews are not practical.16

3-uestionnaires

The use of questionnaires is usually the least costly method for collecting information. It is an effective way to collect a large amount of information in a short period of time. The JAIF in Exhibit 6—3 is a structured questionnaire. It includes specific questions about the job, job requirements, working conditions, and equipment. A less structured, more open-ended approach would be to ask job incumbents to describe their job in their own terms. This open-ended format would permit job incumbents to use their own words and ideas to describe the job.

The format and degree of structure that a questionnaire should have are debatable issues. Job analysts have their own personal preferences on this matter. There really is no best format for a questionnaire. However, here arc a few hints that will make the questionnaire easier to use:

• Keep it as short as possible—people do not generally like to complete forms.

• Explain what the questionnaire is being used for—’-people want to know why it must be completed. Tim Huggins (in this chapter’s Career Challenge) failed to explain his job analysis questionnaire. Employees wanted to know why the questions were being asked and how their responses would be used.

• Keep it simple—do not try to impress people with technical language. Use the simplest language to make a point or ask ‘a question.

• Test the questionnaire before using it—in order to improve the questionnaire, ask some job incumbents to complete it and to comment on its features. This test will permit the analyst to modify the format before using the questionnaire in final form.

SPECIFIC QUANTITAVE TECHNIQUES

4-Job Incumbent Diary or Log

The diary or log is a recording by job incumbents of job duties, frequency of the duties, and when the duties are accomplished. This technique requires the job incumbent to keep a diary or log. Unfortunately, most individuals are not disciplined enough to keep such a diary or log. If a diary or log is kept up to date, it can provide good information about the job. Comparisons on a daily, weekly, or monthly basis can be made. This permits an examination of the routineness or nonroutineness of job duties. The diary or log is useful when attempting to analyze jobs that are difficult to observe, such as those performed by engineers, scientists, and senior executives.

Which Method to Use?

Although any of these four basic methods can be used either alone or in combination, there is no general agreement about which methods of job analysis yield the best information. Many experts agree that, at very least, interviews should not be relied on as the sole data collection method.’7 In addition, the various methods may not be interchangeable; certain methods seem to be better suited to a given situation than other

In the absence of a strong theoretical reason why one method should be superior to another, most organizations base their choice on their current needs.’9 In other words, the choice of a method is determined by circumstances such as the purpose of the analysis and time and budget constraints.

Since these four basic methods seem to have different strengths and weaknesses, many organizations are turning to a multimethod job analysis approach.2° In this approach, the job analyst first conducts interviews with incumbents and supervisors in conjunction with on-site observation. Next, a task survey based on expert judgments is constructed and administered. Finally, a statistical analysis of the responses to the task survey is conducted in order to assess their consistency and to identify any systematic variation in them. There might, for example, be variation in the descriptions provided by incumbents and supervisors, by incumbents at different geographic locations, or by members of different departments. Regardless, differences in how the job has been described need to be resolved so there is general agreement about its true nature.

Using a comprehensive process such as the multimethod job analysis approach will, of course, be relatively expensive and time-consuming. However, it does offer one distinct advantage over any of the basic methods used alone: the quality of information derived from a more comprehensive approach is strongly endorsed by the courts in cases that rely on job analysis information.

The four methods of data collection for job analysis just described were presented in general terms. They form the basis for construction of specific techniques that have gained popularity across many types of organizations. When they arc used properly, these specific techniques can provide systematic and quantitative procedures that yield information about what job duties are being accomplished and what knowledge, skills, abilities, and other human characteristics (KSAOs) are needed to perform the job. Three of the more popular quantitative techniques are functional job analysis, the position analysis questionnaire, and the management position description questionnaire.

EXHIBIT 6-4

025.062-010 Meteorologist (profess. & kin.)

Ana1y and interprets meteorological data gathered by surface and upper-air stations, satellites, and radar to prepare reports and forecasts for public and other users: Studies and interprets synoptic reports, maps, photographs, and prognostic charts to predict long- and short-range weather conditions. Issues weather information to media and other users over teletype machine or telephone. Prepares special forecasts and briefings for those involved in air and sea transportation, agriculture, fire prevention, and air-pollution control. Issues hurricane and severe storm warnings. May direct forecasting services at weather station. May conduct basic or applied research in meteorology. May establish and staff observation stations.

DOT DESCRIPTION OF JOBS

domestic shippers: Plans and directs flow of air and surface traffic moving to overseas destinations. Supervises workers engaged in receiving and shipping freight, documentation, waybilling, assessing charges, and collecting fees for shipments. Negotiators with domestic customers, as intermediary for foreign customers, to resolve problems and arrive at mutual agreements. Negotiates with foreign shipping interests to contract for reciprocal freight-handling agreements. May examine invoices and shipping manifests for conformity to tariff and customs regulations. May contact customs officials to effect release of incoming freight and resolve customs delays. May prepare reports of transactions to facilitate billing of shippers and foreign carriers.

166.117-014 Manager, Employee Welfare (profess. & kin.) employee-service officer; manager, welfare.

Directs welfare activities for employees of stores, factories, and other industrial and commercial establishments: Arranges for physical examinations, first aid, and other medical attention. Arranges for installation and operation of libraries, lunchrooms, recreational facilities, and educational courses. Organizes dances, entertainment, and outings. Ensures that lighting is sufficient, sanitary facilities are adequate and in good order, and machinery safeguarded. May visit workers’ homes to observe their housing and general living conditions and recommend improvements if necessary. May assist employees in the solution of personnel problems, such as recommending day nurseries for their children and counseling them on personality frictions or emotional Maladjustments.

184.117-022 Import-Export Agent (any ind.) foreign agent. Coordinates activities of international traffic division of import-export agency and negotiates settlements between foreign and

187.167-094 Manager, Dude Ranch (amuse. & rec.) Directs operation of dude ranch: Formulates policy on advertising, publicity, guest rates, and credit. Plans recreational and entertainment activities, such as camping, fishing, hunting, ‘horseback riding, and dancing. Directs activities of DUDE WRANGIERS (amuse. & rec.). Directs preparation and maintenance of financial records. Directs other activities, such as breeding, raising, and showing horses, mules, and livestock.

732.684-106 Shaper, Baseball Glove (sports equip.) steamer and shaper. Forms pocket, opens fingers, and smoothes seams to shape baseball gloves, using heated forms, mallets, and hammers: Pulls glove over heated hand-shaped form to open and stretch finger linings. Pounds fingers and palm of glove with rubber mallet and hall-shaped hammer to smooth seams and bulges. and form glove pocket. Removes glove from form, inserts hand into glove, and strikes glove pocket with fist while examining glove visually and tactually to ensure comfortable fit.

Functional job analysis

Functional job analysis (FJA) is the cumulative result of approximately 50 years of research on analyzing and describing jobs. It was originally conceived in the late 1940s and was developed as a mechanism for improving the classification of jobs contained in the Dictionary of Occupational Titles (DOT),22 which was the primary source used by the U.S. Employment Service for descriptive information about jobs.

Current versions of the DOT use the basic descriptive language of FJA to describe more than 20,000 jobs. The DOT classifies these jobs by means of a nine-digit code. If someone is interested in a general description of a job, the DOT serves as a good starting point. Exhibit 6—4 shows DOT descriptions of several jobs. The first three digits of any one of these listings (for example, rneteorologist—025) specify the occupational code, title, and industry. The next three digits (062) designate the degree to which a job incumbent typically has responsibility for and judgment over data, people, and things. The lower the numbers, the greater the responsibility and judgment. The final three digits (010) re used to classify the alphabetical order of the job titles within the occupational group

having the same degree of responsibility and judgment.2 DOT descriptions help a job analyst to begin learning what is involved in a particular job. FIA can then be used to elaborate and more thoroughly describe.

Worker function scale and examples from functional job analysis ( FJA ) Organizational Examples PEOPLE FUNCTIONS SCALE ENTRY-LEVEL SALEPERSON COMPANY TRAINER IA: Taking instructions—helping

1B: Serving 2: Exchanging information 3A: Sourcing information 3B: Persuading 3C: Coaching 3D: Directing 4A: Consulting 4B: Instructing 4(;: Treating 5: Supervising 6: Negotiating 7: Mentoring 8: Leading

Stays within assigned territory. Sends product samples to customers. Asks questions to assess needs of customers. Refers customer to production manager. Convinces customer to purchase product. Gives encouragement to new assistant salesperson. lightens mood with customer when appropriate. Informs customer a bout product specifications. Demonstrates how product works. n/a Structures job of assistant salesperson. Bargains over price with customer. Counsels assistant salesperson on career issues. Models behavior for new salespeople.

Delivers requested programs. Answers trainees’ questions. Asks trainees for feedback. Directs trainees to additional resources. Persuades trainees of importance of topic. Checks on and helps trainees posrprogram. Creates entertaining class environment. Defines and clarifies key concepts. Teaches trainees new computer software. n/a Evaluates learning of trainees. Asks for larger budget from vice president of human resource department. Advises new trainer (in how to deliver a training program. Sets a vision as to why development is important.

EXHIBIT 6-5

4 -C H A P T E R 6 Job Analysis and Design 169 ;1

EXHIBIT 6-6;0]

INFORMATION INPUT PORTIONS OF A COMPLETED PAGE INFORMATION INPUT Extent of Use (U) FROM THE POSITION ANALYSIS 1.1 Soutces of Job Information NA Does not apply QUESTIONNAIRE Rate each of the following items in terms of 1 Normal/very infrequent the extent to which it is used by the worker 2 Occasional as a source of information in performing his or her job. 3 Moderate

4 Considerable 5 Very substantial 1.1.1 Visual Sources of Job Information 1 4 Written materials (books, reports, office notes, articles, job instructions, signs, etc.) 2 2 Quantitative materials (materials which deal with quantities or amounts, such as graphs, accounts, specifications, tables of numbers, etc.) 3 1 Pictorial materials (pictures or picture like materials used as sources of information, for example, drawings, blueprints, diagrams, maps, tracings, photographic films, x-ray films, TV pictures, etc.) 4 1 Patterns/related devices (templates, stencils, patterns, etc., used as sources of information when observed during use; do not include here materials described in item 3 above) 5 2 Visual displays (dials, gauges, signal lights, radarscopes, speedometers, clocks, etc.) 6 5 Measuring devices (rulers, calipers, tire pressure gauges, scales, thickness gauges, pipettes, thermometers, protractors, etc., used to obtain visual information about physical measurements; do not include here devices described in item S above) 7 4 Mechanical devices (tools. eqöiprnent, machinery, and other mechanical devices which are sources of information when observed during use oroperation) 8 3 Matcrials in process (parts, materials, objects, etc., which are sources of information when being modified, worked on, or otherwise processed, such as bread dough being mixed, workpiece being turned in a lathe, fabric being cut, shoe being resoled, etc.) 9 4 Materials not in process (parts, materials, objects, etc., not in the process of being changed or modified, which are sources of information when being inspected, handled, packaged. distributed, or selected, etc., such as items or materials in inventory, storage, or distribution channels, items being inspected, etc.) 10 3 Features of nature (landscapes, fields, geological samples, vegetation, cloud formations, and other features of nature which are observed or inspected to provide information) 11 2 Man-made features of environment (structures, buildings, dams, highways, bridges, docks, railroads, and other “man-made” or altered aspects of the indoor and outdoor environment which are observed or inspected to provide job information; do not consider equipment, machines, etc.. that an individual uses in his or her work, as covered by item 7) Noie:Th,s shows II of the “information input” questions or elements. Other PAQ pages contain questions regarding mental processes, work output, relationships with others, job context, and other job characteristics. Source Position.

questionnaire requires considerable experience and a high level of reading comprehension to complete properly, it is often filled out by a trained job analyst. The job analyst must decide whether each item applies to a particular job. For example, measuring devices (item 6) play a very substantial role (5) for the job being analyzed in Exhibit 6—6.

The 195 items contained on the PAQ are placed in six major sections:

1. Information input. Where and how does the job incumbent get job information?

2. Mental processes. What reasoning, decision-making, and planning processes are used to perform the job?

3. Work output. What physical activities and tools are used to perform the job?

4. Relationship with other people. What relationships with others are required to perform the job?

5. Job context. In what physical and social context is the job performed?

6. Other job characteristics. What activities, conditions, or characteristics other than those described in sections 1 through 5 are relevant?

Computerized programs are available for scoring PAQ ratings on the basis of seven dimensions—( 1) decision ma king, (2) communication, (3) social responsibilities, (4) performing skilled activities, (5) being physically active, (6) operating vehicles or equipment, and (7) processing information. These scores permit the development of profiles for jobs analyzed and the comparison of jobs.

Like other job analysis techniques, the PAQ has advantages and disadvantages. One of its biggest advantages is that it has been widely used and researched. The available evidence indicates that it can be an effective technique for a variety of intended purposes.27 It is reliable in that there is little variance among job analysts’ ratings of the same jobs. It seems to be an effective way of establishing differences in abilities required for jobs.25 It also seems valid in that jobs rated higher with the PAQ prove to be those that are compensated at higher rates. A major problem with the PAQ is its length. It requires time and patience to complete. In addition, since no specific work activities are described, behavioral activities performed in jobs may distort actual task differences in the jobs. For example, the profiles for a typist, belly dancer, and male ballet dancer may be quite similar, since all involve fine motor movements.29 Some research suggests that the PAQ is capable only of measuring job stereotypes.3° If this is true, then the PAQ may he providing little more than common knowledge about a job. That is, ratings on the PAQ might represent information that makes up the job analyst’s stereotype about the work in question rather than actual differences among jobs.

Management Position Description Questionnaire

Conducting a job analysis for managerial jobs offers a significant challenge to the analyst because of the disparity across positions, levels in the hierarchy, and type of industry (for example, industrial, medical, government). An attempt to systematically analyze managerial jobs was conducted at Control Data Corporation. The result of the work is the management position description questionnaire (MPDQ).

The MPDQ is a checklist of 208 items related to the concerns and responsibilities of managers. it is designed to he a comprehensive description of managerial work, and it is intended for use across most industrial settings. The latest version of the MPDQ is classified into 15 sections. Items were grouped into sections in

order to reduce the time it requires to complete, and to help with the interpretation of responses:

1. General information.

2. Decision making.

3. Planning and organizing.

4. Administering.

5. Controlling.

6. Supervising.

7. Consulting and innovating.

8. Contacts (section 8 apj5ears in Exhibit 6—7).

9. Coordinating.

10. Representing.

11. Monitoring business indicators.

12. Overall ratings.

13. Knowledge, skills, and abilities.

14. Organization chart.

15. Comments and reactions.

Although the FJA, PAQ, and MPDQ are all intended for use across a large range of jobs, many other methods of quantitative job analysis are also receiving attention. The common metric questionnaire (CMQ),33 which is completed by an incumbent, is a job analysis instrument with several potential advantages over existing measures. The items are at a reading level more appropriate for many jobs; they are more behaviorally concrete, thereby making it easier for incumbents to rate their jobs; and the CMQ is applicable to both exempt and nonexempt positions, which may increase the number of intrajob skill-based comparisons that may he made.

Considerable research on job analysis is currently being conducted in Europe, focusing on alternative quantitative methods. In Germany, for example, several techniques have the common goal of analyzing and describing work at the task level, independent of any particular incumbent’s perceptions. Thus, these approaches are expected to he well suited to situations where job content or manufacturing technology is changing.

Finally, it is worth noting that the U.S. Department of Labor, Employment and Training Administration has undertaken a major job analysis initiative. In cooperation with several other sources of funding, the Department of Labor’s recent creation, the O*NET (Occupational Informational Network), was developed as a comprehensive system to describe occupations, worker KSAOs, and workplace requirements in the country.35 Incorporating the last 60 years of knowledge about the nature of jobs and work, the automated and Internet accessible O*NET is expected to replace the more cumbersome Dictionary of Occupational Titles.

As previously mentioned, the job description (see Exhibit 6—2) is one of the primary Outputs provided by a systematic job analysis. Simply stated, a job description is a D written description of what the job entails. It is, however, difficult to overemphasize ow important thorough, accurate, and current job descriptions are to an organization. Many changes occurring in recent years have increased the need for such job

RATING INTERNAL AND EXTERNAL CONTACTS USING THE MANAGEMENT POSITION DESCRIPTION QUESTIONNAIRE (MPDQ)

I (I iehic . IrgaIll/atlonil goals. tattat.rrs old clIlitilta its may rcqtiircd to CoIfltotIIiaate with (Ill IS (1, .1 t it an V Ii is ‘vi th mm mIte c IP( r.i ((in a id Sv di ii Ii Ucliti a I people (mitts mdc t he orpl Ira ti iii. lie purposes (It these oiU,lCts lily ITi(II.I(IU (liii hut. t molts as: • lnhmrmuiimg • Receis mug Information • lntlueimciimg • Promoting • Selling • Directing • (‘oordiiiitimig • I iltilarati ii g • Negotiitmiig

DIRECTIONS: 1)ese rm 1w t he ia tim ri It I (10 nitacts iomplettmmg the harts ott the opposite as hi IIl1)W,:

For each contact checked, print a (0111- her hetsveeli I) mitd 4 ill each coitinum to Indicate Ii os’ S ugh I tie a lii a part oh VII or (sit (((It ti it P U R P( )S F is. Retiieiim her to consIder bothIts mImlfIot!aIIcc in light of all (It lie r p ISttI Oh ictiv it ics and Its /reqmuucv of occu rrerice. o DcfnitcIy not a part (It the position. I --\ minor part imt the position. 2-A moderate part of the pIIs(tmon. 3-A substantial hart ut the position. 4-.\ crucial and most significant lilrt of the positIon. STEP .3

If von have am other contacts please elaborate on them r ii a to re and i°’ rpose be 111W.

226

STEP I

Mark an X’ ii the box to the left of the k iiids (if I id is mdii a Is di at represent m (Or ni a I or contacts Internal a id external to (‘I nitro I 1) ata ( tI rp Irat 1(111.

STEP 2

CONTINUED

1 srEP2 STEI I

CoNTACTS I PURIOSF

Share infornation Influence others I )irrct and/or

INTERNAL, re,,i rd og p.1st, p resent, or ant ci pa ted

to .tct or decide n a n at flCt (list sten t

otegra te the iii n s, icti VitW5. ((I’

act cIt es or decisions

ni th nit object yes decision of others

1’.xeciitive or senior V1CC

president and above I .89 I 6 I I S

Vice president Genera l/regii ma I ma niger, director, or executive consultant

16)) 161

16fi 169 I ‘6 1 7 1S4

I 85

Deparmient/district manager, or senior consnlraiit 162 I 0 I ‘X 186

Secto mn/branch na nager m

0l?%LiItailt 163 171 I’9 I

Unit flianager 164 I 2 ISO 188

Exempt employees 168 I 181 189

Nonexenipt employees 66 I 182 190

. EXTERNAL.

Provide. obtain. ( ir exchange iii formation i ir ads’ice

Promote the . orga iii ,,at ii ni or its po Id ucts! services

Sell p r id iict s/ . services

Negotiate contracts, sertlements, etc.

Customers at a Ies’el equivalent to or above a ( lilt rol Data genera IJ

.— regional manager 191 198 20.8 212 219

Customers at a level lower than .t am trol Data general! regional manager Representatives of nia)or suppliers, for e\.iniplr. joint ventures, subcontractors for

192 199 206 , 213 220

major contracts —

Em pl o’ees of suppliers svh ii provide ( .oittrol Data with parts or services Representatives of nfl urn t i a I coinniun it organhiations I id iv id ual s such as

193 94 195

200 2(11 202

207 208 209

215 216

22 I 222 22.)

applicants, stockholders Representatives of federal or sIt te gi nero ments s tmch as detcn se contract auditors, government inspectors. etc.

96 I 9

20.3 204

211) 21 I

II 2 IX

224 . 22

HRMEM0 . Can process changes yield savings? Ask Navis tar international Corporation, a leading transportation firm that has reengineered the way they identifr and manage projects with high strategic fit and economic impact for the firm. it’s working! After completing 200 projects, Navistar realized an average of $200,000 per project Source: Mark Frigo and Heather Kos (August 1999).Navistar’s Dream Team Strategic Finance, pp. 38—45. descriptions. These changes include (1) the incredible number of organizational restructurings that have occurred (e.g., downsizing); (2) the need to implement new and creative ways to motivate and reward employees; (3) the accelerated rate at which technology is changing work environments; and (4) new, more stringent federal regulation of employment practices through legislation like the Americans with Disabilities Act and the Civil Rights Act of 199 1.6 Though some HR managers feel that technology and rapidly changing jobs will eventually decrease the need for job descriptions,37 it still seems unlikely that there are any relevant aspects of human resources that do not depend on accurate job descriptions. While there is no standard format for a job description, almost all well-written, useful descriptions will include information on:3i • Job title—title of the job and other identifying information such as its wage and benefits classification. • Surnmary—brief one- or two-sentence statement describing the purpose of the job and what outputs are expected from job incumbents. • Equipment—clear statement of the tools, equipment, and information hat required for effectively performing the job. ey • Environment—description of the working conditions of the job, the location of the job, and other relevant characteristics of the immediate work environment such as hazards and noise levels. • Activities—includes a description of the job duties, responsibilities, and behaviors performed on the job. Also describes the social interactions associated with the work (for example, size of work group, amount of dependency in the work). The job specification evolves from the job description. It addresses the question “What personal traits and experience are needed to perform the job effectively?” The job specification is especially useful in offering guidance for recruitment and selection. For example, suppose that you were looking for an HR professional to fill the position described in Exhibit 6—8. From the job specification, you would know that the successful applicant would have a college education and would already have at least six years of experience in HRM. Determining what skills, knowledge, or abilities are required for performing a particular job must he done systematically. R. J. Harvey offers the following guidelines for arriving at the characteristics that should be included on a job specification:39 1. All job tasks must be identified and rated in terms of importance using sound job analysis techniques. 2. A panel of experts, incumbents, or supervisors should specify the necessary skills for performing each of the job tasks identified. 3. The importance of each skill must, he rated.

4. Any other characteristics necessary for performing the job should he, identified. These include things such as physical requirements and professional certification. 5. Each skill that has been identified needs to he specifically linked to each job task. Any trait or skill that is stated on the job specification should actually he re £ C i ml A .., i, F e,kltc A’t the

1;ciieral description of the 1ob Performs responsible administrative work managing personnel activities of a large state agency or institution. Work involves responsibility for the planning and administration of an HRM program that includes recruitment, examination, selection, evaluation, appointment, promotion, transfer, and recommended change of status of agency employees, and a system of communication for disseminating necessary information to workers. Works under general supervision, exercising initiative and independent judgment in the performance of assigned tasks. Job activities Participates in overall planning and policy making to provide effective and uniform personnel services. Communicates policy through organization levels by bulletins, meetings, and personal contact. Interviews applicants, evaluates qualifications, classifies applications. ruits and screens applicants to fill vacancies and reviews applications of qualified persons. Confers with supervisors on personnel matters, including placement problems, retention or release of probationary employees, transfers, demotions, and dismissals of permanent employees. Supervises administration of tests. Initiates personnel training activities and coordinates these activities with work of officials and supervisors. Establishes effective service rating system; trains unit supervisors in making employee evaluations. Maintains employee personnel files. Supervises a group of employees directly and through subordinates. Performs related work as assigned. General qualification requirements Experience and training should have considerable experience in area of FIRM administration. Six-year minimum. Education Graduation from a four-year college or university, with major work in human resources, business administration, or industrial psychology. , knowledge, skills, and abilities Considerable knowledge of principles and practices of HRM selection and assignment of personnel; job evaluation. Responsibility Supervises a department of three HRM professionals, one clerk, and one secretary. ferentiate clearly between essential and nonessential skills.40 Essential skills are those for which alternative ways of accomplishing the job are not possible. Nonessential skills can be accommodated by changing the structure or work methods of the job. If disabled people could accomplish the job successfully after such accommodation, then it should be done.

Job Analysis and Strategic Human Resource Management he HR Journal appearing earlier in this chapter suggests that process and work engineering will be the strategic HR challenge for the coming years. There are many signs that the fundamental nature of work may be changing. Functional areas are not as important as they once were for defining a person’s job. instead,

interdisciplinary or cross-functional teams comprised of pers6ns with extremely diverse backgrounds are becoming increasingly common. Not surprisingly, therefore, one of the major complaints about reengineering is that once an organization’s processes have been reconstructed, new job responsibilities may he poorly defined for the new environment.4’ Despite these potential difficulties, organizations will have to continually adapt to rapidly changing business environments. Thus, reengineering of one kind or another is likely in a majority of organizations. This inevitability creates a new problem for the job analyst. While the job analyst has traditionally been charged with creating descriptions of jobs as they exist in an organization, the new job analyst will also have to describe jobs that will exist in the future organization. As mentioned elsewhere in this text, there is a growing acknowledgment of the need to match human resource activities with an organization’s strategic planning.42 An important part of this task vill he an ability for job analysts to write job specifications that accurately detail the knowledge and skills that will complement the future strategic initiatives of the organization.4 In the future, job descriptions will no longer be snapshots of a static entity called a “job.” To the contrary, strategic job analysis will have to be capable of capturing both the present and the future.44 Compounding the potential problems that reengineering can introduce, many work environments will also offer employees much greater flexibility in when and how they work. Organizations such as AT&T, Hewlett-Packard, and Pfizer have all implemented flexible working environments to meet the needs of an increasingly diverse workforce. These programs include variations on traditional work such as compressed work schedules, telecommuting, job sharing, and flexible hours.4 Although it is currently unclear whether these new work arrangements will lend themselves to accurate description through the quantitative methods covered in this chapter. it is safe to assume that effective organizational functioning will require some type of job analysis to be competently conducted.4

Job Analysis and Employee Competencies Over the past decade, some HR departments have increasingly analyzed jobs in a way that is consistent with the changing nature of business and management practices. Much more general than traditional knowledge, skills, and abilities needed to perform one specific job, cwnpetencies are general attributes employees need to do well across multiple jobs or within the organizatioll as a whole. For example, cornpetencies might include anything from “teamwork” to “leadership potential.” As jobs are reengineered, I QM programs arc implemented, and the value of teamwork is emphasized, many organizations are identifying, communicating, and rewarding a variety of broad-based competencies that successful employees should possess. Also termed “competency modeling,” such usage of competencies in HR practices reflects an organization’s desire to achieve the following: • Communicate job requirements in ways that extend beyond the specific jot? itself; • I)escribe and measure the organization’s orkforce in mdre general, competency terms; and — • I)esign and implement stathng programs focused around conipetencics (rather than specific jobs) as a way of increasing staffing flexibility in job a ssign nwnts.4

Once a thorough job analysis has been conducted and there are high-quality job JC descriptions and job specifications available, an organization can USC this information for designing or redesigning jobs. This information iS very useful for structuring job elements, duties, and tasks in a manner that will help to achieve Optimal perft) rmance and satisfaction. There is, however, no one best way to design a job. 1)ifferent situations call for different arrangements of job characteristics. In addition, approaches to job design place different emphasis on performance and satisfaction as desired outcomes. In other words, certain methods of job design are primari lv interested in improving performance; others are more concerned with satisfaction. Thus, it is unlikely that any one approach will fully satisfy all of the goals’of a manager. This means that the choice of job design will involve making trade—offs based on the more critical needs of the organization.45 Perspectives on the design of work can he classified into four major categories: I) the perceptual-motor approach, (2) the biological approach, (3) the mechanistic approach, and (4) the motivational approach.49 Both the perceptual-motor approach and the biological approach have their roots in human factors engineering. Their major focus is on the integration of human and machine systems. Thus, they emphasize equipment design and the proper match between machines aiid operators. The two remaining approaches more clearly highlight the potential trade-offs that must frequently he made by organizations with regard to job design. They are also the two that have received the most attention in the.management literature. The mechanistic approach is best exemplified by Taylor’s scientific management and the motivational approach by job enrichment.

Scientific Management and the Mechanistic Approach Job design was a central issue in F. W. Taylor’s model of scientific management. His use of job design is an excellent example of the rational approach and shows how certain perspectives focus more heavily on productivity than on satisfaction. In 1911, he stated: Perhaps the most prominent single element in modern scientific management is the task idea. The work of every workman is fully planned out by the management at least one day in advance, and each man receives in most cases complete written instructions, describing in detail the task whiji he is to accomplish. . . This task specifies not only what is to be done hut how it is to be done and the exact time allowed for doing it.co ‘The work of Taylor and the principles of scientific management initiated a great deal of interest in systematically studying the structure of jobs. The emphasis was clearly on structuring jobs so that they were broken down into simple, repetitive tasks. Once learned, these tasks could he done quickly and efficiently. Although the principles of scientific management were formally introduced in the early I 900s and many current methods of job design criticize the use of the repetitive-task structure, many of the principles are still relevant today. Among these •re recommendations stemming from Taylor’s scientific management, such as the‘dlowing:

• Employees selected for work should be matched to the demands of the job. (Job descriptions and job

specifications used iii recruitment and selection

should achieve this.)

• Employees should be trained to perform the job.

• Monetary compensation should be tied directly to performance and should be used to reward the

performance of employees.

Many managers find the scientific management approach to job design appealing because these kinds of

recommendations point toward improving organizational performance. It is assumed that the

specialization and routine nature of jobs designed according to scientific management principles will lead

to higher levels of output and require minimal training before employees are able to master the work.

Despite the appeal of these potential advantages, research has found that repetitive, highly specialized

work can lead to dissatisfaction among employees.S1 Thus, the gains in efficiency that scientific

management may offer can he offset by losses in satisfaction and higher levels of absenteeism and

turnover.

Early strategies for overcoming some of the problems associated with jobs designed according to

scientific management focused on job enlargement.52 Job en largement attempts to increase satisfaction

by giving employees a greater variety of things to do. The expansion of the work is, however, considered

horizontal, since the employees are not given more responsibility or authority in decision making. Rather,

they are merely allowed to do a greater number of tasks. Thus, an enlarged job is not as specialized or

routine as a job designed according to scientific management, but it may not be any more meaningful.

job Enrichment: A Motivational Approach

In the past two decades, much work has been directed at changing jobs in more meaningful ways than job

enlargement was able to do. Rather than simply increasing the variety of tasks performed by an employee,

job enrichment tries to design jobs in ways that help incumbents satisfy their needs for growth,

recognition, and responsibility. Thus, enrichment differs from enlargement because the job is expanded

vertically; employees are given responsibility that might have previously been part of a supervisor’s joh.

The notion of satisfying employees’ needs as a way of designing jobs comes from Frederic Herzberg’s

two-factor theory of work motivation. His basic idea is that employees will be motivated by jobs that

enhance their feelings of self-worth.4

Although there are many different approaches to job enrichment, the job characteristics model is one of

the most widely publicized.55 This model is depicted in Exhibit 6—9. It shows that for a job to lead to

desired outcomes it must Possess certain “core job dimensions.” These include

• Skill variety—degree to which the job requires a variety of different activities in carrying out the work,

which involves the use of a number of an

individual’s skills and talents.

• Task identity—degree to which the job requires completion of a “whole”

and identifiable piece of work—that is, doing a job from beginning bo end

with a visible outcome. —

• Task significance—degree to which the job has a substantial impact on the

Source:Ado pied from J. Richard Hackman and R. G. Qldham (August 1976). “Motivation through the Design of Work: Test of a Theory.” Organizational Behavior and Human Performance, p. 256.

*Autonomy—degree to which the job provides substantial freedom, independence, and discretion to the individual in scheduling the work and in . determining the procedures to he used in carrying it out. • Feedback—degree to which carrying out the activities required by the job results in the individual’s obtaining direct and clear information about the effectiveness of his or her performance. If these core dimensions are present in a job, they are expected to create three critical psychological states in job incumbents.’ The key psychological states that are necessary for motivation and satisfaction are: 1. Experienced meaningfulness—degree to which the job incumbent experiences work as important, valuable, and worthwhile. 2. Experienced responsibility—extent to which the job incumbent feels personally responsible and accountable for the results of the work performed. 3. Knowledge of results—understanding that a job incumbent receives about how effectively he or she is performing the job. The more these three states are experienced, the more internal work motivation the job incumbent will feel. To the extent that these three states are important to the job incumbent, he or she will then he motivated to perform well and will be satisfied with the job.

As presented in Exhibit 6—9, three job dimensions—skill variety, task identity, and task significance—AB contribute to a sense of meaningfulness. Autonomy is directly related to feelings of responsibility. The more control 1ob incumbents feel they have over their jobs, the more they will feel responsible. Feedback is related to knowledge of results. For job incumbents to be internally motivated, they must have a sense of the quality of their performance. This sense comes from feedback. The job characteristics model describes the relationships that are predicted to exist among four sets of factors—( I ) core job dimensions, (2) psychological states, (3) personal and work-related outcomes, and (4) strength of needs. Since different people have different capabilities and needs, it is important to be aware of the potential for individual differences to moderate the linkages shown in Exhibit 6—9. If, for example, a person dues not have a strong need for personal growth, then job enrichment will probably have less effect than it would for a person who values personal growth. Many job enrichment programs have been implemented in the United States and in other countries around the world. After 20 years of research, however there are no clear answers about the effectiveness of enrichment. Generally, studies support the expectation that jobs perceived to possess the core dimensions of the job characteristics model are more satisfying. On the other hand, the relationships between the critical psychological states and employees’ reactions to enrichment are not yet fully understood.’ Research also suggests that increasing the scope of a job beyond certain levels can have detrimental effects on workers. Work-Family Balance and Job Design Organizations are directing more attention and resources toward helping employees balance their work and family demands. Driving this work-family tension are a number of variables related to the changing demographics of the workforce. For example, the number of women and single parents entering the workforce is expected to increase. Often viewed as primary caregivers, these individuals vill continue to experience stress as they attempt to balance career and family priorities. Another example of demographic changes includes the increase in dual-career couples. In Some cases, caregiving responsibilities may he shared, leading both working spouses to require flexible work arrangements to meet family life and career cycle needs. The aging population will he another factor that requires a response from working-age caregivers. As the baby boom generation reaches retirement age, this issue will grow in importance. How are organizations responding to these challenges? Although nor as dramatic as originally anticipated, a trend is emerging in which some organizations are trying to accommodate diverse employees’ needs by offering flexible work arrangements. Examples of flexible work arrangements include job sharing, flextime, and telecommuting. It is believed that by allowing employees more control over their work lives, they will he better able to balance their work-home demands. Many have argued that companies that offer and encourage participation in such famil— friendly work arrangements will reap one or more of the following benefits: higher recruitment and retention rates, improved morale, lower absenteeism and tardiness, and higher levels of employee productivity.

“partners” who have complementary scheduling needs and skills.61 Companies such as CoreStates Financial, AT&T, Kraft, and Household International all have oh-sharing options available for their employees. Flextime is another type of flexible work arrangement in which employees can choose when to be at the ofce.62 I—or example, employees may decide that instead (it working 5 days a week for 8 hours a day, they may prefer to work a 4—day!! 0— mr per day work schedule. With this schedule, the employees do not have to be at the of&e on Friday. 1o avoid peak rush hour, other employees might use their flex— time to arrive at and leave from work one hour later Monday through Friday. One research study concluded that flexible workweek schedules had a positive influence on employee performance, job satisfaction, and absenteeism. These authors also reported that flextiine programs should not be too unstructured and that they lose some of their effectiveness over time. Companies that offer fiextime options include I lewlctr-Packard, Merrill Lynch, and Cigna. Telecommuting refers to the work arrangement that allows employees to work in their homes part- or full-time, maintaining their connection and communication with the office through phone, fax, and computer.64 Though oftentimes resisted by managers who fear loss of control and subordinate accessibility, one company has aken a methodical approach to implementing a telecommuting program. Pfizer Inc., a large health care company, took the following steps to establish their program: I. Chose a small division to pilot the telecommuting initiative. 2. Limited the number of days to work at home to two per week. 3. Opened the program to all employees of the division. 4. Required interested employees to satisfy a formal proposal and performance standards. S. Required demonstration that the work could be accomplished off-site and that the employee could sustain and/or enhance performance. Although organizations like Pizer and the other faniily-friendiy firms are movmg forward to attract, motivate, and retain employees with diverse nonwork needs,) organizations need to consider three important issues when developing and implementing such flexible work arrangement options. First, every attempt should be made to open these programs to all employees. The risk here is that if only certain e,roups are offered these options, then excluded group’ may feel discriminated against. Managers need to be aware that excluded employees can create a backlash .!ainst work-family programs!’ Second, having the CEO of an organization anoiince these programs is not enough to effect change. Many career-minded employees do not take advantage of job sharing, flextime, or telecommuting for fear of being derailed from their career progression.66 In order to make these programs an accepted part of the organization, managers need to he trained and rewarded for encouraging their subordinates to use them without fear of derailing their good standing within the firm. Third, organizations need to be mindful of the laws that may impact how these flexible work arrangement policies are developed and managed. oine applicable laws include the Fair Labor Standards Act, workers’ compensation, J the Occupational Safety and Health Act!

Job Design: The Next Challenge In the late I 980s and early 1 990s, European and Asian competitors of American corporations were revolutionizing job design by turning away from the basic dc1i1t of scientific management and embracing the quality management movement

More recently. self-directed teams hav become important ingredients in the success of manufacturers worldwide! And now, because of the competitive pressures that foreign business has placed on them, American orporations—including Chevron, Coca-Cola, Federal Express, General Electric, General Motors, Motorola, Procter & Gamble, and Xerox, to name a few—are also implementing self-directed work teams.’9 Countless others are reengineering their work processes, hoping to regain their competitive advantage. Regardless of the specific nature of redesign, many organizations have learned the hard way that reengineering cannot succeed unless careful attention is also paid to the effects on how employees use their skills. The appropriate response to these changes is exemplified by Coopers & Lybrand’s competency alignment process (CAP). CAP involves the systematic study, analysis, and assessment of

jobs and the skills needed to perform them in the reengineered organization. To accomplish this goal, CAP determines current skill levels of employees in order to identify skill gaps. When a skill deficiency exists for the reengineered organization, it can then be eliminated through a variety of programs including training, redeployment, and outsourcing.7° Without these or similarly intense efforts, the reengineering will probably not succeed. Thus, job analysts and other HR professionals are a crucial link in the reengineering processes upon which so many corporations are staking their competitive future.

This chapter has emphasized the major role that job analysis plays in HRM activities and programs. Each part of the diagnostic HRM model is in some way affected by job analysis. The job is the major building block of an organization. Therefore, it is essential that each characteristic of each job in an organization he clearly understood.

To summarize the major points covered in this chapter: . 1. There are six sequential steps in job analysis, starting with examining the total organization and the fit of jobs and concluding with the preparation of a job specification (see Exhibit 6—2). 2. The uses of job analysis information seem endless. Strategic planning. recruitment, selection, training, compensation, and job design all benefit immensely from job analysis information. .3. Conducting job analysis is not for amateurs. Training is required. 4. Before conducting a job analysis, organization and process charts should be consulted to acquire an overview of the organization. 5. Four general job analysis techniques can be used separately or in combination observation, interviews, questionnaires, and job incumbent diaries or logs. 6. The multimethod approach to job analysis uses a combination of these four general. methods. It is a comprehensive approach and is currently viewed very favorably from a legal respective.

7. Functional job analysis (FjA) is used to describe the nature of jobs, prepare job descriptions, and provide details on job specifications. The job is described in terms of data, people, and things. . The Dictionary of Occupational Titles is a listing of over 20,000 jobs on the basis of occupational code, title, industry. 9. The position analysis questionnaire (PAQ) is a I95item structured instrument used to quantitatively assess jobs on the basis of decision making, communication and social responsibilities, performing skilled activities, being physically active, operating vehicles or equipment, and processing information. 10. The management position description questionnaire (MPDQ) is a checklist of 208 items that assesses the concerns and responsibilities of managers. 11. Job design involves structuring job elements, duties, and tasks to achieve optimal performance and satisfaction. 12. job design was a concern of F.WTaylor, the famous industrial engineer and father of what is called scientific management. I 3. job enrichment involves designing jobs so that employees’ needs for growth, recognition, and responsibility are satisfied. 14. Reengineering is more than job redesign. It is taking a new look at the entire flow of work through an organization. Without adaptable job descriptions, however, it cannot succeed.

What do you now think about Tim Huggins’s job analysis process? Do you see why some type of training in job analysis is required Tim really lacked sufficient training, and this lack was clearly revealed as the process got out of hand. . Using questionnaires requires preparation and

conch careful initial steps.A trained job analyst knows that distribution of questionnaires without an explanation is bound to set off negative feelings.Tim failed to plan thoroughly what he wanted to do. He was a new boss, and this alone was threatening to many people.A new person

luded has to establish rapport o with emp’oyees before ir changing things. ti In the case of Sprowl ai Manufacturing,Tim’s haste a and lack of preparation have now caused the situation to T reach a boiling point. He a needs to backtrack and slow down. Perhaps distributing memos, holding TERMS

open discussions with informal leaders, and using the expertise of trained job analysts can improve the atmosphere at Sprowl. What would you advise Tim to do about job analysis at this point?

autonomy common metric questionnaire (CMQ) competency alignment process (CAP) feedback functional job analysis (FJA) job job analysis job analysis information format (JAIF) job characteristics model job description job enlargement job enrichment job family

specification management position description questionnaire (MPDQ) niultimethod job analysis approach Occupational Information Network (0 *NET) organization chart POSItiOn position analysis questionnaire (PAQ) process chart skill variety strategic job analysis task task identity task significance

1. What are the six steps in the job analysis process? 2. Job analysis is often referred to as the “cornerstone” of HRM. Do you agree? Why? 3. How might job analysis be helpful to an organization that is being sued for sex discrimination in

promotion? 6 4. As a current (or future) manager, how will you communicate the requirements of an entry-level customer service representative to a candidate who just arrived at your office for an interview? \Iill you describe the job in terms of corn-

petencies? Knowledge, skills, and abilities? Both? Explain your answer. 5. What core information should be included in most job descriptions and job specifications? 6. What is the difference between an essential and a nonessential skill? How are these related to the Americans with Disabilities Act? . Describe the mechanistic and motivational models of job design.What is the emphasis of each?

8. Describe the major components of the job characteristics model of job enrichment. 9. What is the ONET? How and when would a job analyst use the ONET? Do you think it will replace the Dictionary of Occupational Titles? Why or why not?

10. What challenges does the concept of reengineering pose for job analysis and human resources

Based on Worthington v. City of New Has en, 1999 U.S. Dist. LEXIS 16104. The Facts Patricia Worthington was hired 1w the City of New Haven on December 23, 199 I, as an Account Clerk I in its Tax Office. According to the City’s job description, the Account Clerk I position required bookkeeping, maintaining accounts, preparing payrolls and financial reports. checking receipts and vouchers, receiving payments, and various other clerical duties. On February 3. 1992, Ms. Worthington. who had preexisting back, neck, and knee in)uries, fell at work. As a result of the fall, she suffered neck and lower back pain when sitting For extended times. Following the accident, Ms. \Vorthington requested three accommodations from the City: (1) an ergonomic chair with neck and back support, (2) replacement of overhead shelves with waist level shelves, and (3) modification of her job duties so that she avoided standing for long periods of time. Despite recominendanons from her doctor for the ergonomic chair and letters froii ti’e Connecticut Bureau of Rehabilitative Services suggestinj a worksite evaluation, the City . repeatedly denied Ms. Worthington’s requests for accommodai ions based on a lack of funds. On May 24, 1993, she filed a grievance with the City. After an investigation, the Cit agreed to provide Ms. Worthington with a more comfortable chair. On July 1 3, 1 993, she hled a grievance with the union, complaining that she was still required to stand for long periods of time. On April 13. 1994, Ms. Worthington filed a disability discrinnnation suit under the Americans with Disabilities Act in U.S. District Court for the District of Connecticut. Later in that same month, the City provided Ms. Worthington with an ergonomic chair. Following surgery for spinal problems aggravated by her fall at work, Ms. Worthington ceased working on March 25, 1995, due to her disability.

The Court’s Decision To recover under the ADA, a plaintiff must prove that he or she is a “qualified individual with a disability who can perform the essential functions of their job, with or without accommodations.” According to the AI)A, a

disability is I) a physical or mental illpairmcilt that substantially limits one or more major life activities, (2) a record of such impairment, or (3) being regarded as having such an impairment. The court found that Ms. Worthington had a physical impairment of her musculoskeletal system that substantially limited her ability to walk and stand for long periods of time. Thus, Ms. Worthington had a disability under the ADA. Further, the court found that Ms. Vorthington did indeed possess the required education, experience, and skills for the Account Clerk I position. The court examined the City’s job description for Account Clerk I to determine if Ms. Worthingwn could perform the essential functions of the ob either with or without accommodations. The court found that the essential functions of Account Clerk I involved preparation of payrolls and financial reports, maintenance (if accounts and parking tag books, and checking receipts and vouchers, which could all he performed with only occasional standing. The City claimed that filling in for an employee who collected parking fines which involved standing for long periods of time was also an essential function of Ms. Worthington’s job. Howevei the court disagreed and awarded Ms. Worthington $150,000 in compensatory damages, holding that she was a qualified individual with a disability who could perform the essential functions of the Account Clerk I position with reasonable accommodations.

Human Resource Implications Organizations must carefully define essential and nonessential job functions in their job descriptions and be prepared to provide reasonable accommodations requested by employees. According to the ADA, essential functions are the fundamental hut not marginal duties of a job. A job duty is essential if (I) the position exists to perform the function, (2) there are a limited number of employees who are available to perform the function, and (3) the employee was hired for an expertise or ability to perform a particular function. In differentiating between essential and nonessential job functions in job descriptions, employers should also consider how much time an emplace spends performing a jot) duty and the consequences of not requiring an employee to perform the duty.

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Informational Network (0 NEI): Implications for Practice and Research,” Personnel Psi’cholog pp. 451—492. ONET can be found on the Web at http://www.onetcenter.org/. Robert J. Sahi (FaIl 1992), “Pressing Reasons for Accurate job Descriptions,” Human Resource Professional, pp. 18—20. Sharon Leonard (August 2000), “The Demise of lob 1)escriptions,” HRMagazznc. pp. 184—I 85. jai Ghorpade (1 988), Job Analysis: A Handbook for the Human Resource I)irector (Englewood Cli Ifs,

NJ: Prentice-Hall), pp. 93—] 34. Harvey, OP. cit., p. 383. Nancy Asquith and 1)aniel E. Feld (1994), Employment Testing Manual: 1994 Cumulative Supplement (Boston: Warren, Gorham, Lamont), pp. 3—6/3—7. 41 1)anny C. Langdon and Kathleen S. Whiteside (May 1996), “Redefining lobs and Work in Changing Organizations,” HRMagaine, pp. 97—101. 42 Susan Jackson and Randall Schuler (2003), Managing Human Resources through Strategic Partnerships 8th ed. (Mason, OH: South-Western), pp. 4—5; John E. Butler, Gerald R. Ferris, and Nancy K. Napier (1991), Strategy and Human Resources Management (Cincinnati, OH: South-Western). Timothy P. Summers and Suzanne B. Summers (1997), “Strategic Skills Analysis for Selection and Development,” Human Resource Planning, pp. 14—19. ° Schneider and Konz, op. cit., pp. 5 1—6.3. Torn Duffy (July 2001), “Alternative Work Arrangements,” Network World, pp. 39—40; Karen A. Edelman (October 1996), “Workplace Flexibility Boosts Profits,” Across the Board. pp. 56—57; and Miriam Basch Scott (September 1996), “Flexibility Improves Workplace at Owens Corning, I)un & Bradstreet Information Systems,” Employee Benefit Plan Review pp. 30—31. Karen E. May (April 1996), “Work in the 21st Century: Implications ior ob Analysis,” www.siop.org/tip.hackissues/tipapr96/rnay.htrn. Jergen Sandberg (March 2001), “Understanding Competence at Work,” Harvard Business Review, pp. 24—28; Heneman, Judge, and Henernan, op. cit., pp. 184—1 86; jeffery Shippmann, Ronald Ash, Linda Carr, and Beryl Hesketh (2000), “The Practice of Competency Modeling,” Personnel Psychology, pp. 703—740. ‘ Michael A. Campion and Carol L. McClelland (June 1993), “Follow-Up and Extension of the Interdisciplinary Costs and Benefits of Enlarged Jobs,” Journal of Applied Ps’cbolog’’, pp. 339—351. Michael A. Cainpion and Gina J. Medsker (1 991), “job

Design,” in C. Salvendy (ed.), Handbook of Industrial Engineermg, 2nd ed. (New York, Wiley), pp. 845—881. Frederick W. Taylor (1 911), The Principles of Scientific Management (New York: Flarpcr & Row), p. 21. Si David A. Nadler, j. Richard Hackman, and Edward E. Lawler III (1979), Managing ()rganiational l3cbai’ior (Boston: Little, Brown), p. 79. 52 Ricky W. Griffin (1982), Task Design: An Integrative Approach (c;lenview, IL: Scott, Foresman), p. 21. Griffin, OP. cit., pp. 31 —34. ‘ Frederick Herzberg, B. Mausner, and B. Snyderman (1959), The Motivation to Work (New York: Wiley). j. Richard Hackman and Greg R. Oldham (August 1976), “Motivation through the Design of Work: Test of a Theory,” Organizational Behavior and Human

Performance, pp. 250—279; and .1. Richard Hackman, Greg R. Oldham, R. Janson, and K. Purdy (Summer 1975), “A New Strategy for Job Enrichment,” California Management Review, pp. 57—71. 56 Hackman and Oldham, op. cit., Pp. 250—279. ‘ Nancy G. Dodd and Damel. C. Ganstec çy 1.996), “The Interactive Effects of Variety, Autonomy, and Feedback on Attitudes and Performance,” Journal of Organizational Behavior, pp. 329—347. 8 Robert W. Rcnn and Robert J. Vandenberg (Summer 1995), “The Critical Psychological States: An Underrepresented Component in Job Characteristics Model Research,” journal of Management, pp. 279—303. Jia Lin Xie and Gary Johns (October 1995), “Job Scope and Stress: Can job Scope Be Too High?” Academy of Management Journal, pp. 1288—1309.

187 60 Luis R. Gomez-Mejia, David B. Balkin, and Robert L. Cardy (2000), Managing Human Resources, 3rd ed. (Upper Saddle River, NJ: Prentice Hall). 61 Charlenc Solomon (September 1994), “Job Sharing: One job, Double Headache?” Personnel Journal, pp. 88—93. Gomez—Mejia et al., Managing Human Resources. ‘ Boris B. Baltes, Thomas E. Briggs, Joseph \V. Huff, Julie A. Wright, and George A. Neuman (August 1999), “Flexible and Compressed Workweek Schedules: A Meta-Analysis of Their Effects on Work-Related Criteria,” lournal of Applied Psychology, pp. 496—513. 64 (;ornez-Mejia Ct al., Managing Human Resources. 6 Sharon Leonard (July 2000), “The Baby Gap,” HRMagazine, pp. 368—370. 66 Keith Hammonds, Roy Furchgott, Steve Hamm, and Paul ludge (September 1997), “Work and Family,” Business Week, pp. 96--lOl. 6’ Gillian Flynn and Sarah E Gale (October 2001), “The Legalities of Flextirne,” Work force, pp. 62—66. 68 Jane Gibson and Dana Tesone (November 2001), “Management Fads: Emergence, Evolution, and Implications for Managers,” The Academy of Management Executive, pp. 122—1 33. “i Michael W. Piczak and Reuben Z. Hauser (May 1996), “Self-Directed Work Teams: A Guide to Implementation,” Quality Progress, pp. 8 1—87. 70 Nicholas F. Homey and Richard Koonce (December 1995), “The Missing Piece in Reengineering,” Training and Development. pp. 37—43.

Mary Watson was recently promoted to the position of regional sales manager for Today’s Fashion, a national chain of specialty clothing stores with 200 outlets across the country. Mary is the regional manager for the Pacific Coast, which is one of Today’s Fashion’s largest markets. She manages 35 outlets in California and Oregon; each of these outlets has a store manager who reports directly to Mary. Each outlet: has between three and five assistant store managers, depending on the number of specialty departments. Each assistant manager is responsible for one particular specialty department. These departments vary considerably in size and in the number of sales clerks reporting to the assistant manager. Because the chain’s success lies in being receptive to local customers tastes and buying habits, each store has a different collection of merchandise, and several different combinations of departments can be found in Mary’s region. The departments include casual wear, formal wear, shoes, cosmetics, and jewelry. Prior to being appointed to the regional sales manager position, Mary had been both a store manager and an assistant manager in a casual-wear department.While she was an assistant manager, Mary had often thought that she was responsible for many aspects of store management that other

assistant managers were not held responsible for. In addition, she never really felt comfortable that her store manager had clearly defined her areas of responsibility.Thus. despite the chain’s success, Mary felt that there was considerable room for improvement in how Today’s Fashion was managed.As a result, one of the first things Mary did after being appointed to the regional sales position was to initiate a job analysis for the job of assistant store manager. Mary had earned a BBA degree with a marketing emphasis

from Wyoming State University. Although she had no formal training in job analysis, she was confident that she could construct an accurate and useful job description and specification for the assistant manager job, primarily because of her personal experience with that position. However, rather than simply writing from her own experience, Mary interviewed three current assistant store managers from the outlet closest to her regional office in Sacramento. On the basis of these interviews and her own experience, Mary constructed the job description and job specification shown in Exhibit I She hopes that these documents will form the basis of a new selection program that she wants to implement for her region. She believes that the best way to improve store management is to hire assistant store managers who are qualified to perform successfully.

DISCUSSION QUESTIONS I. Critically evaluate the job analysis that Mary conducted for the position of assistant store manager. Has she used appropriate methods? What are the strengths and weaknesses of her efforts? 2. What kinds of factors about Today’s Fashion and its operations should Mary have examined more seriously in order to improve her job analysis? 3. Carefully read the job description and job specification that Mary prepared. Do they appear to be thorough? Do you think that they are adequate to serve as a basis for a new selection system? How well do you think these documents will work if Mary is sued for discrimination in her hiring practices? Why?

Job Title: Assistant Store Manager Reports to: Store Manager

General Description of the Job .lanages the daily functions of a specialty department in the retail (iperatio s. The assistant store manager has responsibilit v for customer service, supervision of saleselerks. training of new einph ivecs, inerchatidising, and maintenance of inventory.

Principal Duties and Responsibilities • Assists customers in mcrrhandise sclecti ms, returns, and layaway as needed. 2. (larilies any qiicstiu s or problems that a salesclerk encounters. S. Frains,cnordinates. directs, and supervises department salcsclcrks daily. 4. Maintains inventory records. . Prepares the department for opening at the beginning of each day. Ensures that the department remains professionally organized and orderly.

General Qualification Requirements I—lzicati ,i: Minimum: Four-year college degree in marketing or related discipline from an accredited program. L x/wrieIuce: • Minimum: 5ux months to one year in a retail environment. 2. Preferred: One to three years as a salesclerk for Today’s Fashion. Isiioivk’ilgc, skills, cilnliti’s: I . Basic math

2. Effective interpersonal skills . Good udgmeni and independent thought 4. Self-starter/highly motivated S. High integrity 6. Good typing and computer skills •lvslcal reqiurelilents: Standing and walking required for more than 90 percent of work time. 2. Ability to lift and can y boxes weighing approximately 15 pounds or less.

Clark Kirby was just entering the office of the vice president of human resource management, Lois Yates. Clark had worked for Gunther Manufacturing for 10 years in Los Angeles. After a short management training program, Clark spent almost two years as •erating supervisor in a plant. After that, a position opened up in the HR department. Clark had majored in personnel at California State University at Los Angeles and wanted to try HRM work. He moved up in the - department headquarters during the next seven years. Gunther was a growing firm. For a medium-sized operation, it had one of the fastest growth records in the industry. Now Gunther as opening a new plant in e quickly expanding Tampa market. Lois had selected Clark to be the human resource manager for the Tampa plant.This was what Clark had been waiting for: a chance to be on his own and to show what he could do for Lois, who had been very supportive of his career, and for Gunther. He was very excited as he entered Lois’s office. Lois greeted him with, “Well, Clark, I hope you realize how much we are

counting on you in Tampa. Shortly you’ll be meeting your new plant manager, Ed Humphrey.You’ll be working r for him but responsible to me to see that Gunther’s HRM policies are carried out. “The plant will be staffed initially with the following employees. These are, in effect, your recruiting quotas: Managers 38 Professional and technical 10 Clerical 44 Skilled employees 104 Semiskilled employees 400 You’ll receive a budget for maximum initial pay for this group shortly. “You and Ed should work out the details.You can recruit some employees from the home office and other plants, but excessive

raiding is not allowed. Remember, too, that Gunther has an equal employment opportunity problem. Wherever possible, try to hire qualified minorities and women to help us meet our internal goals. f “Your own HR office consists of yourself, one HR specialist to help you run the empleyment office, and one clerical employee. Good c luck!” F

Clark quickly arranged a for a meeting with Ed, his v new boss. Ed, about 50 g years old, was a high school p graduate who had started a with Gunther as a blue- n collar employee when he u was 18 years old.After 10 years in various blue-collar E positions, Ed became a f foreman. Eight years later he i was selected as an assistant e to the plant manager. After e several years in this h position, he was made one tI of three assistant plant n managers at a Gunther plant n in Chicago. He held that position until being given h this new position of plant manager at the Tampa plant. After introductions, C Clark and Ed talked. p

Clark Here are the figures t for employees that Lois gave e me. She also said we could recruit some people from p Gunther, but not to raid beyond company policy. E Also. Lois said we needed to rr do an exceptional job ti recruiting minorities and u women because we have an a EEO problem. ti Ed Let’s get something straight right off. You working for me now, not Lois. Here’s o a list of 20 manager I want F to take with me. It’s your a ‘job to persuade them to come to Tampa with me. In in cases where my help might persuade some to come

along, call on me. But I’m very stressed now trying to get machinery ordered, the plant laid out, financing arranged, and so on. Call on me only When you must, understand? Oh, one more thing. That EEO *#/OX_you can forget that.The Tampa plant is going to be the most efficient in the company, or else! And if that means hiring the best workers and they all turn out to be white men, that’s tough, you get me? Keep me posted on what’s happening. Good to have you on board.

After some thought, Clark decided to use job posting as a method of attracting professional- technical and managerial employees at the Los Angeles office to the new plant in Tampa. He also made the personal contacts Ed asked for in recruiting managerial employees, and the skills inventory was used to come up with more applicants. Clark contacted these also. He did not use job posting or the skills inventory for clerical, skilled, or semiskilled employees. He knew that for Gunther, as with most organizations, these categories of employees rarely wish to (continued on next page)

move to another location. I- Most companies don’t want t’ to pay relocation costs for h these categories of a employment, either. r Clark went to Tampa and set up the employment office at the new location. ‘ He ran an ad in Tampa’s F afternoon paper and placed a job listing with a private employment agency for the

HR specialist and clerk- a typist for his office.Then he a, hired these two employees p and set up the office to a receive walk-ins. He ir provided application blanks . b and policy guidelines on n when selection would I proceed. Clark listed the available s positions with the U.S. v Employment Service. He

also contacted private in agencies. He selected the hi private agencies after calling cc a number of HR managers w in the Tampa area in similar w businesses who were also hi members of the Society of tF Human Resource Management.The HR a specialist notified all the vocational-technical schools, a junior colleges, and colleges t[ Ii L.4

in the Tampa area. Also, all high school guidance counseling departments were notified. Clark wondered what other media he ought to use to publicize the positions. Clark found out quickly, as you will find in this chapter, that recruftment is a little more complicated than he originally thought.

Before an organization can fill a job vacancy, it must find people who not only are qualified for the position but also want the job. This chapter descril)es the recruiting process as one of the ways that an organization can deal with shortages in its human resources needs. Recruitment refers to organizational activities that iiifluence the number and types of applicants who apply for a job and whether the applicants accept jobs that are offered. I Thus, recruitment is directly related to both human reour e

planning and selection. En addition, recruiting often represents the first coti— tact between organizations and prospective employees. As such, care should be taken to create a positive hrst impression with these job applications. Although recruitment can be quite expensive, organizations have not always treated it as systematically a other HR functions, such as selection. l)uring the coming years, however, the importance of recruitment will probably increase for many organizations. Even with a modest rise in recession-based unemployment at the beginning of the 21st century. fears of a looming tight labor market in the United States continue to plague organizations of all sizes..2 I)riven by the inevitable retirements of baby hoomers and fewer numbers of young people entering into the work- force, the labor shortage has caused many companies to develop retention strategies to hold onto their valued employees. For example, Hewlett—Packard Co. and Charles Schwab Corp. have preferred freezes or cut pay to avoid layoffs.4 Despite the fact that organizational layoffs reached a 10-year high at the end of the 1990s, experts anticipate a growing number of iabor shortages in high-skills areas. Exhibit 7—1 shows how the recruiting process is affected liv various factors in the environment. The recruiting process begins with an attempt to find employees with the abilities and attitudes desired lw the organization and to match them with the tasks to he performed. Whether potential employees viIl respond to the recruiting effort depends on the attitudes they have developed toward those tasks and the organization on the basis of their past social and working experiences. Their percepnon of the task will also he affecte.l liv the work climate in the organization and the Important interaction of the organization as a recruiter and the employee as a recruit is examined in the next section.

Government and Union Restrictions

government regulations prohibiting discrimination in hiring and employment have INFLUENCES 1 direct impact on recruiting practices. As described in derail in (chapter 3, government agencies can and do review the following information about recruiting to see 1 [I organization has violated the law: • List of recruitment sources (such as employment agencies, civic organizations, schools) for each job category. • Recruiting advertising. • Estimates of the employment needs k)r the coming \ear.

Source: Kenneth Sovereign (1999). Personnel Law. 4th ed. (Upper Saddle River, NJ: Prentice Hall), pp. 46—51; Gerord Panoro (1990), Employment Law Manual (Boston: Warren, Gorham, and Lamont), pp. 1—10. • Statistics on the number of applicants processed by demographic category (sex, race, and SO on) and by job category or level. • Checklists to show what evidence was used to verify the legal right to work. Although there is no guaranteed way to avoid legal entanglements associated with recruiting, Exhibit 7—2 provides some basic principles of sound recruiting practices. The Immigration Reform and Control Act (IRCA) of 1986 has placed a major responsibility on employers for stopping the floW of illegal immigration to the United States. The employer—not the government—is the chief enforcer of the prohibition against the unauthorized recruitment and employment of foreign-horn individuals. ’ Under the law’s “employer sanctions” arrangement, all employers are required to screen every applicant’s eligibility for lawful employment and maintain records demonstrating employment authorization. The IRCA is a complex piece of legislation, but its basic features fit into four broad categories: ‘—i’ Employer’s duty not to recruit, hire, or continue to employ “unauthorized aliens.” 2. Employer’s duty to verify the identity and work authorization of every new employee. ‘L_3 Employer’s duty not to discriminate on the basis of citizenship or national origin. _4. Amnesty rights of certain illegal aliens who are eligible to achieve temporary or permanent resident status in the country. Despite the difficulty that organizations have determining whether a worker is legally employable, the

government is currently planning to step up its enforcement of the IRCA. Additional money will be spent on hiring more investigators, attorneys, and support staff, but some money will also he devoted to ensuring that legal applicants are not discriminated against because of the stepped-up enforcement activities. Labbr Market Conditions Another external environmental factor affecting recruiting is labor market conditions (these were described in some detail in Chapter 2). If there is a surplus of Iabor at recruiting time, even informal attempts at recruiting will probably attract

1. lENT 2.

Post notices regarding the availability of a job. . Publish a list of qualifications necessary to fill the job. Distinguish between essential qualifications

and desirable ones.

3. Do not rely only on word—of-mouth sources (if recruits.

4. Use recruiting sources that will reach the greatest number of potential applicants in the job market.

5. g wary of establishing qualifications that might directly or indirectly exclude members of protected groi.i PS.

6. Be sure the job qualifications are applied to every applicant in a consistent manner.

As mentioned earlier in this chapter, unemployment in the United States has recently hit record low levels and, despite massive layoffs in some industries, experts are predicting no end to critical shortages of skilled labor. These shortages are expected to be especially acute in high-tech industries such as computers and wireless communications. To remain mpetitive, organizations in these industries must find new innovative ways to identify, attract, and hire people with the skills needed. Clearly, the Internet is one of the tools being used more and more frequently to satisfy these difficult recruiting goals. Recently, there has been another twist to Internet use in organizational recruitment and selection.The talent auction has arrived. The largest job posting site in the world, www.monster.com, has added another capability to its Internet services. Contract and temporary workers can now register at the website, and organizations are given the opportunity to bid against one another for a given worker. A similar online auction site dedicated solely to high-tech talent can be found at www.Bid4geeks.com.Though little research has been conducted to assess the success of these recruiting innovations, there appears to be a considerable organizational interest in the concept. It should be kept in mind that in spite of the meteoric e in the use of the Internet for recruitment and job

search activities,Web postings still only represent approximately 2 percent of all job listings. In addition, the unwary user should not be lulled into believing that the Internet can easily replace other forms of recruiting. For example, it is difficult if not impossible for an organization to capture the degree of fit between an applicant’s personality and the organization’s culture from an electronic resume alone.At the same time, organizations that do not begin to capitalize on the Internet might soon find themselves at a competitive disadvantage. In addition, new developments occur almost daily that make the Internet more effective. One way to stay current regarding online recruiting is to enroll in Internet-based courses that teach the latest in advanced online recruiting techniques. Such courses are available from a variety of verdors, including Recruiting-Online.com (http://www.recruitingonline.com/home.html). Course content at Recruiting- Online includes the following “how-tos”: build a candidate database, manage contact with thousands of passive jobseeker candidates, take advantage of newsgroups and listservs, find resumes of people with any skill set or in any location in the world, and obtain e-mail addresses of employees at companies that are merging or downsizing. Chances are virtual recruiting is here to stay.

more than enough applicants. However, when full employment is nearly reached in an area, skillful and prolonged recruiting may be necessary to attract any applicants who fulfill the expectations of the organization. Obviously, how many applicants are available also depends on whether the economy is growing. When companies are not creating new jobs, there is often an oversupply of qualified labor. An employer can find out about the current employment picture in several ways. The federal Department of Labor issues employment reports, and state divisi ofls of efriployrnent security and labor usually can provide information about specific types of employees. There are also sources of information on local employment conditions as they affect their members. Current college recruiting efforts are analyzed by the Conference Board, A. C. Nielsen, and the Endicort Report, which appears in the Journal of College Placement. Various personnel journals, the Month/-v Labor Review, and The Wall Street Journal also regularly report on employment conditions

Composition of Labor Force and Location of Organization The influence of FIRM law on activities was noted in Chapter 3. As the number of legal requirements has increased, it has become important for an organization to analغze the composition of its workfor . Such an analysis is done to determine whether the hrni’s employment practices are discriminatory. The location of the organization and the relevant labor market will play a major role in the CompoSition of the workforce. That is, the number of African American, Hispanic, Asian or Pacific Islander, Native American, or Alaskan native employees in the workforce depends largely on the availability of these minority employees in the relevant labor market. Regardless of the location of the organization, an aggressive diversity management program will be essential for organizations entering the 21st century. Due in part to skills shortages, progressive orgamzations now ul7derstand that effective diversity management is an integral strategic tool for enhancing competitiveness. For diversity management to work, however, it must be valued by the organization. But for those organizations such as Allstate Insurance with the foresight to embrace diversity, the benefits can be tremendous in terms of outcomes ranging from higher 1ItI’ tfl I I(’tP1 (11crc11l1r ci ticfntiin X

INTERACTIONS After considering how external factors such as government, unions, labor market OF THE RECRUIT conditions, composition of the workforce, and location of the organization restrict AND THE recruiting options, the next step in understanding the recruiting process is to consider the interaction between the applicants and the organization in recruiting. ORGANIZATION In Exhibit 7—2 (the diagnostic model), the nature of the organization and the goals of the managers are highlighted, as is the nature of the task. The techniques used and sources of recruits vary with the job. As far as the applicants are concerned, their abilities and past work experience affect how they go about seeking a job.

The Organization’s View of Recruiting Several aspects affect recruiting from the organization’s viewpoint: the recruiting requirements set, organizational policies and procedures, and the organization’s image. Recruiting requirements The recruiting process necessarily begins with a detailed oh description and job specification.’ \Xithout these, it is impossible for recruiters to determine how well any particular applicant fits the job. It should be made clear to the recruiter which requirements are absolutely essential and which arc merely desirable. This can help the organization avoid unrealistic expectations for potential employees: An employer might expect applicants who stand first in their class, are presidents of extracurricular activities, have worked their way through school, are good-looking, have 10 years’ experience (at age 21), and are willing to work long hours for almost no money. Contrasting with this unrealistic approach, the effective organization examines the specifications that are absolutely necessary for the job. Then it uses these as its beginning expectations for recruits (see the sections on oL analysis, job description, and job specifications in Chapter 6). Organizational policies and practices In some organizations,IIRM policies and prctices affect recruiting and who is recruited. One of the most significant of these is promotion from within. Fdr all practical purposes, this policy means that many nrganizations recruit from outside the organization only at the initial hiring level.

Most employees favor this approach. They feel this is tair to present loyal employ— ees and assures them of a secure future and a fair chance at promotion. Some employers also feel this practice helps protect trade secrets. The techniques used for inrernal recruiting will be discussed later in this chapter. Is promotion from within a good policy Not always. An organization ma become SO stable that it is set in its vavs. The business does not compete effectively, or the government bureau will not adjust to legislative requirements. In such cases, promotion from within may be detrimental, and new employees from outside might be helpful. Other policies cait also affect recruiting. Certain organizations have always hired more than their fair share of the disabled, veterans, or ex-convicts, for example, and they may look to these sources first. Others i1ay be involved in nepotism and favor relatives. All these policies affect who is recruited. Organizational image The image of the employer generally held by the public can affect recruitment. All else being equal, it should be easier for an organization with a positive corporate image to attract and retain employees than an organization with a negative image. 0 Thus, for those organizations that reach the top of Fortune magazine’s “most admired” list, such as Coca-Cola or the most recent two— time winner, General Electric, I the time and effort needed to recruit high—quality workers may be less than for competitors who rank poorly. Recruitment should also be somewhat easier for companies that exude a strong cumulate presence or positive flame recognition. In sum, the ideal job specifications preferred by an organization may have to be adjusted to meet the realities of the labor market, government, or union restrictions, the limitations of its policies and practices, and its image. If an inadequate number of high—quality people apply, the organization may have to adjust the job to fit the best applicant or increase its recruiting efforts.

The Potential Employee’s View of Recruiting Exhibit 7—i highlighted several factors relevant to how a recruit looks for a job. The incant has abilities, attitudes, and preferences based on past work experiences and influences of parents, teachers, and others. These factors affect recruits in two Ways: how they set their job preferences, and how they go about seeking a job. Understanding these is vital to effective recruiting. Preferences of recruits for organizations and jobs Just as organizations have ideal speciation for recruits, SO do recruits have a set of preferences for jobs. A student leaving college generally expects to obtain a job that actually requires college-level education and skills. The graduate might also have strong geographic preferences and expectations about salary and may anticipate that advancement will occur rapidly. However, such a recruit is not necessarily going to nd her or his ideal job. Although the Bureau of Labor Statistics predicts that the total number of college- level job openings between NOW and 2008 will nearly equal rhe number of college- educated entrants to the labor force, there yill still be approximately 6 million college graduates either unemployed or underemployed (i.e., working in positions that Jo not require a bachelor's degree). For example, significant numbers of college radiates will Likely he working as retail sales employees, food preparers and wavers, motor vehicle operators, and in administrative support roles. Recruits also face barriers to Iinding their ideal job, harriers created 1w economic conditions,

government and union restrictions, and the limits of organizational policies and practices. The recruit must anticipate compromises, just as the organization must. From the individual’s point of view, choosing an organization involves at least two major steps. First, the individual chooses an occupation—perhaps in high school or early in college. Then she or he chooses the organization to work for within that broader occupation. What factors affect the choice of occupation and organization? Obviously, there are many, many factors that influence these decisions. But a survey conducted by the National Association of Colleges and Employers found that occupational choice is most heavily influenced by parents, followed by teachers, career counselors, friends, and relatives.’4 As previously mentioned, choice of an organization might be influenced by corporate image. Additionally, many recruits prefer larger, well-established firms over smaller organizations.1 Research also suggests that satisfaction with the communication process in recruitment is critical to attracting applicants. 16 In reality, however, this decision isn’t always purely rational; it is also affected by unconscious processes, chance, and luck. Job search and finding a job: The recruit People who are successful at finding the “right job” tend to follow similar research processes. It is not always enough to simply be in the right place at the right time. The effective job searcher creates opportunities in a systematic way. An effective job search involves several steps including self-assessment, information gathering, networking, targeting specific jobs, and successful self-presentation. ‘ The job search is a process that begins with self-assessment. The purpose pf self-assessments is for job searchers to recognize their career goals and their strengths and weaknesses, interests and values, and preferred lifestyles. This information is used later in the search to help the applicant assess whether there is a fit with a particular job offer. The assessment is similar to what organizational recruiters will be doing, hut from the perspective of the applicant. Information gathering and networking are methods for generating lists of p0- tential employers and jobs. Sources of information include newspapers, trade publications, college recruitment offices, and organizational “insiders.” Many questions about possible employers must be answered before a list of alternatives can he generated. 1. Do I have a size preference: small, medium, or large, or no particular size? 2. Do I have sector preference (private, not for profit, or public sector)? 3. What kinds of industries interest me? This question is usually based on interests in products or services. Do 1 prefer working with mechanical objects or counseling people? This is a crucial question. 4. Have I checked to make sure that the sector, product, or service has a good future and will lead to growth and opportunity? Once these kinds of questions have been answered, the job seeker can generate a list of prospective employers using a wide variety of sources including fle\VSpapers, personal contacts, and the Internet. When the job seeker has decided where he or she will send a resume, self-presentation becomes critical. Research suggests that recruiters want to see a resume and cover letter that is tailored to the position ,,,,-l : 8 T1,1 rr,uir rciinw should include these items, in order of

HRMEM0 Americas Job Fank is a

coo perative eflbrt between the U.S. Deportment of Labor and the

Public Employment Service. Currently, it lists over 1.4

million job openings for job seekers.

Source: ww-w.ajb.chi.us/seeker

C H A P T E R 7 Recruitment 1. Position you seek. 2. Your specific job objectives. 3. Your career objectives. 4. Reason you seek employment. 5. An indication that you know something about the organization. Unfortunately for the organizational recruiter, not all job seekers provide truthful resumes.’ A survey conducted by Reid Psychological Systems found that as many as 95 percent of college students are willing to he less than truthful about themselves when they are searching for a job.2° And with the use of resume databases constantly increasing as an initial screening tool,21 the temptation to embellish one’s own qualifications might be difficult to ignore. But job seekers need to understand that in the long run little can be gained from such practices, especially since falsification of an application is typically grounds for dismissal. • Successful job seekers also prepare carefully for job interviews. They do their “homework” and learn as much about the company as possible. In addition, they use “impression management” tactics to their advantage.22 Although it is not a good idea to present an unrealistic picture of one’s qualifications, interviewers are strongly influenced by an applicant’s interpersonal and communication styles during the interview. In fact, characteristics such as these are primary determinants of recruiters’ firm-specific judgments about an applicant’s suitability.2 Once an organization has decided it needs additional or replacement employees, it is faced with the decision of how to generate the necessary applications. The organization can look to sources internal to the company and, if necessary, to sources external to the company. Most organizations have to use both internal and external ources to generate a sufficient number of applicants. Whenever there is an madequate supply of labor and skills inside the organization, it must effectively “get its message across” to external candidates. It is here that the organization’s choice of a particular method of recruitment can make all the difference in the success of the re •uiti efforts.

nternaI Recruiting ob posting Organizations can make effective use of skills inventories for identifying nternal applicants for job vacancies. It is difficult, however, for HR managers to be \vare of all current employees who might he interested in the vacancy. To help with this problem, they use an approach called job posting and bidding. In the past, job posting was little more than the use of bulletin boards and company publications for advertising job openings. Today, however, job posting has become one of the more innovative recruiting techniques being used by organizations. Many companies now see job posting as an integrated component of an eftective career management system. A model job posting program was implemented at National Semiconductor. OStings are computerized and easily accessible to employees. Computer software ilows the employees o match an available job with their skills and experience. It hen highlights where gaps exist SO the employees know what is necessarY if they wish to be competitive for a given job.24 Amoco’s career management system includes a similar type of job posting program. Openings in this organization are

PA K T II Acquiring Human Resources posted on a worldwide electronic system. If an employee applies for a transfer to a posted position and is turned down, then the person who posted the job is requireti to send the “applicant” specific feedback about why he or she was not selected.1 Inside moonlighting and employees’ friends If there is a short-term shortage, or if no great amount of additional work is necessary, the organization can use inside moonlighting. It could offer to pi’ bonuses of various types to people not on a time payroll to entice workers into wanting to take on a “second job. Nationally, it is estimated that approximately 6 percent of all employed people have held more than one job at the same tiIlle.2b Moonlighting is so common at some Organizations that HR departments consider issiing “moonlighting policies’ that include the communication of performance expectations, prevention of conflict of interest, and protection of proprietary information.2 ihus, Some persons will clearly be motivated to accept the additional work if they are fairly compensated. Before going outside to recruit, many organizations ask present employees to encourage friends or relatives to apply. Sonic organizations even offer “finders fees” in the form of monetary incentives for a successful referral. When used wisely, referrals of this kind can be a powerful recruiting technique. Organizations must be careful, however, not to accidentally violate equal employment laws while they are using employee referrals. For example, in EEOC i l)ctroit Ediso,z (1 975),2X the U.S. Court of Appeals, Sixth Circuit, found a history of racial discrimination that was related to recruitment. The court stated: The practice of relying on relerrals by a predominantly white worktorce rather than seeking new employees in the iiiarketplace for jobs was found to be discriiiinating. This case suggests that employee referrals should be used cautiously, especially if the workforce is already racially or culturally imbalanced. it also suggests that it might not be wise to rely exclusively on referrals but rather to use them as supplements to other kinds of recruiting activities. External Recruiting When an organization has exhausted its internal supply of applicants, it must turn to external sources to supjilement its workforce. Research indicates that walk-ins provide an important external source of applicants. As labor shortages increase, however, organizations are becoming more proactive in their recruitment efforts. A number of methods are available for external recruiting. Media advertising, c-recruiting, employment agencies, executive search firms, special-events recruiting, and summer internships are discussed here. There is also a separate section on college recruitment of potential managers and professionals. Media advertisements Organizations advertise to acquire recruits. Various media are used, the most common being help—wanted ads in daily newspapers. Organizations also advertise for people in trade and professional publications. Other media used are billboards,, subway and bus cards, radio, telephone, and television. Some job seekers do a reverse twist; the’ advertise for a situation wanted and reward anyone who tips them off about a job. In developing a recruitment advertisement., a good place to begin is with the corporate image. General Mills used its Trix cereal logo to create instant recognition among MBA graduates. The ad featured the Trix rabbit with the headline, “It’s Not Kid Stuff Anymore.” The copy continued, “Now you’re au MBA who’s look—

ing for a dynamic growth-directed career environment . . . Look to General Mills. Because it’s not kid stuff anymore. It’s your Future. “ Simply using a corporate logo is not enough, however. Effective recruiting ad:ertising is consistent with the overall corporate image; that is, the advertisement is -een as an extension of the companY. Therefore, it must be representative of the values that the corporation is seeking in its employees. Apple Computer’s advertising campaign has been very successful, in large part because it has achieved this congruence. ° An innovative way to attract nurses was used in an ad campaign for Children’s 1-lospital Medical Center in Cincinnati. The ad appealed to nurses’ sense of pride in themselves and their profession. The ad ran in the Cincinnati Engineer newspaper. I lie headlines—”Nurses are smart and they know how to make you feel better,” urses are there to make sure you don’t get real scared,” “Nurses arc kind and hey don’t laugh whet’ you cry”—were written in a child’s handwriting and coinhitied with pictUres of nurses and children in the style of a child’s drawing. Another innovative way to attract prospective employees with particular skills • he use of recorded want- ads. Want ad recordings were used by 40 companies recruiting engineers and scientists at a New York City convention. At a special recruiting center, job hunters were able to pick up a telephone and hear a three-minute taped recruiting message that included a jol description and details about how to ntact the company. Help-wanted ads must he carefully prepared. Media must be chosen, coded for -rudy, and analyzed for impact afterward. If the organization’s name is not used and a box number is substituted, the impact may not be as great, hut if the name is used, too many applicants may appear, and screening procedures for too many people can be costly. This is a difficult decision to make in preparing recruitment advertisements. In addition, ads need to comply with EEO requirements and not violate the law. For example, HR recruiters find that including diversity in recruitment ads helps to attract more employees from diverse populations.’’ Ads need to he written to ivoid indicating preferences for a particular race, religion, or gender or a particular ::,ce of national origin. The advertisement shown in Exhibit 7—3 is the type that will care trouble for a firm. Look at the questions that could he raised by this ad. E-Recruiting Perhaps no method has ever had as revolutionary an effect on orgam/ .itional recruitment practices--as the Internet. According to Forresrer Research of

Cambridge, Massachusetts, there are approximately 30,000 different websites devoted in some manner to job posting activities.33 The largest job-placement websites have reported huge increases iii the number of resumes that were posted in 2001. For example, Monster.com listed 8.3 million resumes, while CareerBuildcr.corn indicated that it listed 2.0 million. Overall, the c-recruiting market in the United States in expected to grow from just $500 million in 2000 to $4.5 billion in 2004. Quite obviously, the Internet has become one of the most prominent of all worldwide recruiting methods. It has become such an important source of job search information that GTE Corporation (Verizon) now receives between 20,000 and 30,000 e-mail resumes each year. Current estimates are that over 95 percent of all U.S. companies now utilize the Internet for some or all of their recruitment-related activities.3 There are many reasons for the popularity of the Internet as a method of recruitment. From the organization’s perspective, it is a relatively inexpensive way to attract qualified applicants. For example, using an executive search firm might cost an organization as much as one-third of a position’s first-year salary as a commission. A large, multicolored advertisement in a professional journal can easily cost $10,000 or more. Compare these figures with the cost of using the “post a job express” option at Monster.com (http://www.nionster.com) in wbch a job is posted for 60 days in a single geographic location at a cost of about $300. This c-recruiting option provides almost immediate access to thousands of prospective applicants. From the job seeker’s perspective, the Internet allows for searches over a broader array of geographic and company postings than was ever before possible. To assist them, job searchers can use any number of the following Internet-based job searching websites (for more information, see http://jobsearch.ahout.com/): • www.HotJobs.corn—Search by career field, location, and company. • www.CareerBuilder.corn—Search by location, job title, keyword, and salary. • www.Dice.com—Leading technology job hoard with permanent and contract jobs. • iuww.FlipDog.corn—Search thousands of employment opportunities gathered directly from organizations’ websites. • wunv.jobs.corn—Search for jobs, post your resume, and review career resources. • wwttjobson1zne.corn—Search job postings, find samples of resumes and cover letters, seek career advice, and use a salary calculator. • u’ww.NationJob.corn—Job listings will be identified and sent to personal e-mail addresses. There are other online services, such as CareerPath.Com (http://www.careerpath.com), which catalogs more than 100,000 traditional newspaper recruiting ads from large newspapers across the United States in one easily searchable datahas. Finally, there are many other, more specialized online sites that focus on jobs in particular areas such as health care, higher education, and federal employment.37 Organizations are also beginning to see that having their own human resources Web page on the Internet can he an effective a,ddition to their overall recruitment strategy. A typical organizational home page will provide background

HR JouRNAL E-REcIUJITING: A WONDERFUL TOOL

BUT NOT WITHOUT ITS RISKS

Many would agree that the Web has revolutionized job 3 hunting and recruitment in the 21st century. Currently, employers can eIectroncally screen candidates’ soft attributes, direct potential hires to a special website for online skills assessment, conduct background checks over the Internet, interview candidates via videoconferencing, and manage the entire process with Web-based software. Companies are very excited and amazed at the potential cost savings, speed enhancement, and extended worldwide candidate reach such approaches offer. Although such innovations are welcomed at a time of skills shortages and pressures to control internal costs, there are legal risks associated with the unbridled use of e-recruiting. HR managers and company recruiters need to keep the following issues in mind when developing and executing an e-recruitment program: I. Be careful not to inadvertently screen out diverse candidates. Many recruiters, in an attempt to avoid being deluged by resumes, use screening software that searches for (or deletes based on) certain words or phrases.The legal risk can involve either poor selection of resume- screening software and/or using terms that disproportionately eliminate candidates from protected classes. Make sure the job opening is communicated to large portions of the target population. If the target population for a given opening includes people of all ages, then company recruiters need to get the message out to those a individuals who are less likely to be Internet-savvy and a use the online job search websites. For example, younger r people will be more likely to be online, more so than s older individuals, If recruiters don’t use traditional methods of job posting along with Internet-based approaches, they run the risk of creating adverse impact in their recruiting methods.

3. Recruiters need to figure out a way to track applicants who apply for online job postings. The Office of Federal Contract Compliance Programs (OFCCP) requires companies that do business with the federal government to keep track of applicant flow data (e.g., type and number of individuals who apply for different jobs). Due to the ease of sending an electronic resume, recruiters sometimes find this tracking process to be a daunting task.The legal risk to employers is that they do not maintain adequate records and fail to be within compliance of the OFCCP. 4. E-mail communication might be too casual. When individuals communicate via e-mail to potential candidates, there can be a tendency to disclose more information than they typically would using newspaper ads or other more traditional recruiting techniques.This relative informality in the communication process could lead to the recruiter saying something that could come back to haunt them if the candidate does not get the job. In addition, the candidate has written documentation to show what the recruiter wrote.The legal risk is that candidates may assume that they did not get the job due to a discriminatory reason and may file a complaint with the recruiting manager’s supervisor or even the EEOC. s Even with the existence of these legal risks, all signs indicate that e-recruiting is here to stay. As with other important aspects of good management practice, recruiters and HR managers are encouraged to use e-recruiting in an appropriate way to increase the attraction and selection r rates of well-qualified individuals. Sources: Gillian Flynn (April 2002), “E-recruiting Ushers in Legal Dangers,” Work force, pp. 70—72; Bill Leonard (August 2000), “Online and Overwhelmed,” HRMagazine, pp. 36—42;Jerry Useem (July l999),’For Sale Online:You,” Fortune, pp. 66—78.

P A R T I I Acquiring Human Resources Employment agencies and executive search firms Although similar in purpose, employment agencies and executive search firms differ in many important ways. Executive search firms tend to concentrate their efforts on higher-level managerial positions with salaries in excess of $50,000, while agencies deal primarily with middle- level management or below. Most executive search firms are on retainer, which means that the organization pays them a fee whether or not their efforts are successful. In contrast, agencies are usually paid only when they have actually provided a new hire. Finally, executive search firms usually charge higher fees for their services. One of the reasons that organizations are willing to pay these higher fees is that executive search firms frequently engage in their recruiting efforts while maintaining the confidentiality of both the recruiting or1ganization and the person being recruited.39 Special-events recruiting When the supply of employees available is not large or when the organization is new or not well known, some organizations have successfully used special events to attract potential employees. They may stage open houses, schedule visits to headquarters, provide literature, and advertise these events in appropriate media. To attract professionals, organizations may have hospitality suites at professional meetings. Executives also make speeches at association meetings or schools to get the organization’s image across. Ford Motor Company has conducted symposia on college campuses and sponsored cultural events to attract attention to its qualifications as a good employer. One of the most interesting approaches is to provide job fairs. A group of firms sponsors a meeting or exhibition at which each has a booth to puhlicie jobs available. Though sometimes challenging to manage in times of higher unemployment,40 some experts claim recruiting costs have been reduced by 80 percent using these methods. They may be scheduled on holidays to reach college students who are home at that time or to give people who are already employed a chance to look around. This technique is especially useful for smaller, less well known employers. It appeals to job seekers who wish to locate in a particular area and those wanting to minimize travel and interview time. For example, a recent job fair held in Virginia was able to generate 4,000 job candidates in a little under four hours of operation.41 And, yes, there is an Internet site to help the recruit. The website www.johweh.com/ search/cfairs provides current listings of when and where job fairs will be held in the United States. Summer internships Another approach to recruiting and getting specialized work done that has been tried I’v organizations is to hire students as interns during the summer or part time during the school year. The list of organizations using intern- ships is extensive; it includes AT&T General Motors, most major accounting firms, the life insurance industry, and so forth. The use of internships is, in fact, dramatically increasing. Some estimates suggest that nearly one out of every three students at four-year universities will have one or more internship experiences before graduation. 42 Internship programs have a number of purposes. They allow organizations to get specific projects done, expose themselves to talented potential employees who may become their “recruiters” at school, and provide trial-run employment to determine if they want to hire particular people full time.4 The realities of the job market of the I 990s have also introduced two new reasons for internship programs. First, many organizations now see them as a way to attract the best people in areas where there are labor shortages. To do so, companies such as Accenture and BAT Industries (a tobacco firm) actually begin identif

Employment agencies and executive search firms Although similar in purpose, employment agencies and executive search firms differ in many important ways. Executive search firms tend to concentrate their efforts on higher-level managerial positions with salaries in excess of $50,000, while agencies deal primarily with middle- level management or below. Most executive search firms are on retainer, which means that the organization pays them a fee whether or not their efforts are successful. In contrast, agencies are usually paid only when they havc actually provided a new hire. Finally, executive search firms usually charge higher fees for their services. One of the reasons that organizations are willing to pay these higher fees is that executive search firms frequently engage in their recruiting efforts while maintaining the confidentiality of both the recruiting or1ganization and the person being recruited.39 Special-events recruiting When the supply of employees available is not large or when the organization is new or not well known, some organizations have successfully used special events to attract potential

employees. They may stage open houses, schedule visits to headquarters, provide literature, and advertise these events in appropriate media. To attract professionals, organizations may have hospitality suites at professional meetings. Executives also make speeches at association meetings or schools to get the organization’s image across. Ford Motor Company has conducted symposia on college campuses and sponsored cultural evcnts to attract attention to its qualifications as a good employer. One of the most interesting approaches is to provide job fairs. A group of firms sponsors a meeting or exhibition at which each has a booth to publicize jobs available. Though sometimes challenging to manage in times of higher unemployment,40 some experts claim recruiting costs have been reduced by 80 percent using these methods. They may be scheduled on holidays to reach college students who are home at that time or to give people who are already employed a chance to look around. This technique is especially useful for smaller, less well known employers. It appeals to job seekers who wish to locate in a particular area and those wanting to minimize travel and interview time. For example, a recent job fair held in Virginia was able to generate 4,000 job candidates in a little under four hours of operation.41 And, yes, there is an Internet site to help the recruit. The website www.johweb.com/ search/cfairs provides current listings of when and where job fairs will be held in the United States. Summer internships Another approach to recruiting and getting specialized work done that has been tried by organizations is to hire students as interns during thc summer or part time during the school ycar. The list of organizations using intern- ships is extensive; it includes AT&T, General Motors, most major accounting firms, the life insurance industry, and so forth. The use of internships is, in fact, dramatically increasing. Some estimates suggest that nearly one out of every three students at four-year universities will have one or more internship experiences before graduation. 42 Internship programs have a number of purposes. They allow organizations to get specific projects done, expose themselves to talented potential employees who may become their “recruiters” at school, and provide trial—run employment to determine if the want to hire particular people full time.43 The realities of the job market of the 1 990s have also introduced two new rcaSOflS for internship programs. First, many organizations now see them as a wa to attract the best people in areas where there are labor shortages. To do so, compaiiies such as Accenture and BAT Industries (a tobacco firm) actually begin identif

Employment agencies and executive search firms Although similar in purpose, employment agencies and executive search firms differ in many important ways. Executive search firms tend to concentrate their efforts on higher-level managerial positions with salaries in excess of $50,000, while agencies deal primarily with middle- level management or below. Most executive search firms are on retainer, which means that the organization pays them a fee whether or not their efforts are successful. In contrast, agencies are usually paid only when they have actually provided a new hire. Finally, executive search firms usually charge higher fees for their services. One of the reasons that organizations are willing to pay these higher fees is that executive search firms frequently engage in thçir recruiting efforts while maintaining the confidentiality of both the recruiting oranizarion and the person being recruited Special-events recruiting When the supply of employees available is not large or when the organization is new or nor well known, some organizations have successfully used special events to attract potential eiriployees. They may stage open houses, schedule visits to headquarters, provide literature, and advertise these events in appropriate media. To attract professionals, organizations may have hospitality suites at professional meetings. Executives also make speeches at association meetings or schools to get the organization’s image across. Ford Motor Company has conducted symposia on college campuses and sponsored cultural events to attract attention to its qualifications as a good employer. One of the most interesting approaches is to provide job fairs. A group of firms sponsors a meeting or exhibition at which each has a booth to publicize jobs available. Though sometimes challenging to manage in times of higher unemployment,40 some experts claim recruiting costs have been reduced by 80 percent using these methods. They may be scheduled on holidays to reach college students who are home at that rime or to give people who are already employed a chance to look around. This technique is especially useful for smaller, less well known employers. It appeals to job seekers who wish to locate in a particular area and those wanting to minimize travel and interview time. For example, a recent job fair held in Virginia was able to generate 4,000 job candidates in a little under four hours of operation.41 And, yes, there is an Internet site to help the recruit. The website www.johweb.com/ search/cfairs provides

current listings of when and where job fairs will be held in the United States. Summer internships Another approach to recruiting and getting specialized work done that has been tried Lw organizations is to hire students as interns during the summer or part rime during the school year. The list of organizations using intern- ships is extensive; it includes AT&T, General Motors, most major accounting firms, the life insurance industry, and so forth. The use of internships is, in fact, dramatically increasing. Some estimates suggest that nearly one out of every three students at four-year universities will have one or more internship experiences before graduation. 42 Internship programs have a number of purposes. They allow organizations to get specific projects done, expose themselves to talented potential employees who may become their “recruiters” at school, and provide trial—run employment to determine if they want to hire particular people full time.4 The realities of the job marker of the 1 990s have also introduced two new rcasons for internship programs. First, many organizations now see them as a way to attract the best people in areas where there are labor shortages. To do so, companies such as Accenture and BAT Industries (a tobacco firm) actually begin identify talented students in their senior year in high school, help them with college expenses, and provide paid work experiences. Their hope is to develop a lasting relationship with these talented young people.44 A second new reason that organizations are using more internships is to improve the diversity of their recruitment efforts. Many companies claim that they want to he more aggressive in recruiting minorities but say that the competition for talented people is severe. To help, Inroads Inc. of Saint Louis locates and places high-performing minority students in internship programs. Inroads has working relationships with organizations in 33 different states. Its major supporters include NationsBank, GE Capital Services, and AT&T.4 From i-be student’s point of view, the summer internship means a job with pay; NCR, for example, provides students with approximately 600 paid internships each year.4” An internship can also mean real work experience for the student; a possible future job; a chance to use one’s talents in a realistic environment; and in some . cases, earning course credit hours. In a way, it is a short form of some co-op college work and study programs. There are costs to these programs, of course. Sometimes the interns take up a lot of supervisory time, and their work is not always the best. But the major prob1cm some organizanons have encountered concerns the expectations of students. Seine students expect everything to be perfect at work. When it is not, they get negative impressions about the organization they have worked for, assuming that it is less well organized than others in the field. Such disillusioned students become re vers recruiters. - College recruiting There is a growing gap between the skills that organizations will need over the next several years and those currently possessed by potential employees. College recruiting can be extremely difcult, time-consuming, and expensive for the organization. Nonetheless, recruiters generally believe that college recruiting is me of the most effective ways of identifying talented employees.4 All this suggests that college recruiting will continue to play an important role in organizations’ overall recruitment strategies, but that organizations will be careful about controlling expenses. The college recruiting process is similar in some ways to other recruiting. However, in college recruiting, the organization sends an employee, usually called a recruiter, to a campus to interview candidates and describe the organization to them. Coinciding with the visit, brochures and other literature about the organization arc often distributed. The organization may also run ads to attract students or may conduct seminars at which company executives talk about various facets of the organization. In the typical procedure, those seeking employment register at the college placement service. This placement service is a labor market exchange providing opportunities for students and employers to meet and discuss potential hiring. During the recruiting season (from about mid-October to mid-March), candidates are advised of scheduled visits through student newspapers, mailings, bulletin hoards, and SO forth. At the placement service, they reserve preliminary interviews with employers they want to see and are given brochures arid other literature about the

Students who are invited to the site are given more job information and meet appropriate potential supervisors and other executives. They are entertained and may he given a series of tests as well. The organization bears all expenses. If the organization wants to hire an individual, he or she is given an offer before leaving the site or shortly thereafter by mail or phone.4X Some bargaining may take place on salary and benefits, depending on the current labor market. The candidate then decides whethetto accept or reject the offer. As with other forms of recruiting, organizations are becoming more creative in their use of colleges and universities. Many of the changes are designed to reduce overall recruiting costs while maintaining a strong flow of applicants into the organization. The trcnd seems to he for an organization to develop a stronger, ongoing relationship with a relatively select number of schools. For example, Monsanto recently cut the size of its university recruiting list by 50 percent, and it may reduce the size of that list even further—down to as few as 10 or 12 schools—for its recruiting activities in engineering. This reduction is, in part, made possible by Monsanto’s increased activity in internship programs.49 The effective college recruiter Various people influence the applicant during the process of choosing a job: peers, family, spouse, friends, and professors. One of the most important influences remains, however, the recruiter. The recruiter is the filter and the matcher, the one who is actually ‘seen by the applicants and is viewed as an exte4- sion of the organization. The recruiter is seen as a primary example of the kind of person the organization values and wants to attract in the futUre. For these reasbns, recruiters must be carefully chosen• b the organization. Good recruiters convey’ an image and appearance that reflects fa1vorably on the organization. They must he outgoing, self-motivated, and obviously good salespeople. In addition, however, good recruiters also possess well-developed interpersonal skills because part of their responsibility should be to determine why job offers are accepted or rejected by candidates. Finally, recruiters should be very familiar with the company they represent, fcirat least two reasons. First, applicants want to discuss opportunities with someone they perceive to be knowledgeable about the company. Second, the recruiters need to be able to determine whether the applicant will fit into the value system of the organization. Students prefer recruiters who have work experience in their specialties and have some personal knowledge of the university they are visiting. Students’also have preferences for specific behavior during the recruiting interview. Characteristics they want most in the recruiter are friendliness, knowledge, personal interest in the applicant, and truthfulness. Some’ ipplicants prefer enthusiastic and knowledgeable communicators.’° MajG.r flaws students have found in typical recruiters include the following: Lack of interest in the app1iant. Students infer indifference if the recruiter’s presentation is mechanical, bureaucratic, and programmed. One student reported, “The company might justas well have sent a tape recorder.” Lack of enthusiasm. If the recruiter seems bored, students infer that he or she represents a dull and uninterestingcompany. Intervieu’s that are stress ful or too persona1 Students resent too many personal questions about their social class, their parents, and so forth. They want to be evaluated for their own acomplishments. They, like most people, also unanimously reject stressful or sarcasth interviewing styles.

CH A P T ER7 Recruitment 2 0 7 ;1

EXHIBIT 7-4;0]

TRADITIONAL PREVIEW REALISTIC PREVIEW CONSEQUENCES Sets initial job expectations too high. Sets oh expectations realistically. DPREEVEW

Job is typically viewed as attractive, Job may or may not he attractive, depending stimulating, and challenging, on individual’s needs. High rate of acceptance of oh offers. Sonic accept, sonic reject job offer. Work experience disconfirms expectations. Work experience confirms expectations. “Dissatisfaction and realization that job is not Satisfaction; needs matched to job. matched to needs. w job survival, dissatisfaction, frequent High job survival, satisfaction, infrequent thoughts of quitting. . thoughts of quitting.

source: Adopted from John P. Wanous (992). Organizational Entry: Recruitment, Orientation, and Socialization of Newcomers Boston:Addison.Wesley), pp. 53—86; john P Wonous (july—August 1975), ‘Tell It Like It Is at Realistic Job Preview,” Personnel, p. 54.

Time allocation by recruiters. The final criticism of recruiters has to do with how much rime they talk and how much they let applicants talk or ask questions. From the point of view of the applicant, much of the recruiter’s time is wasted if it includes a long, canned history of the company, number of employees, branches, products, assets, pension plans, and so forth. Many of the questions the recruiter asks applicants are answered on the application blank anyway.

Good recruiters are not going to guarantee success in filling positions, however. Although they can and do make a difference, applicants’ decisions are affected more by characteristics of the job and the organization than they are by particular characteristics of recruiters. Other research also suggests that recruiters may have very little positive influence Ofl an applicant’s choice. Recruiters do make a difference when they do riot present themselves well. In this case, they can have a negative effect on applicants even when the job and the organization are both appealing.51

It is important for recruiters to provide realistic expectations about the job. When they do so, there is significantly lower turnover of new employees, and the same nurn- ber of people apply. Researchers have found that most recruiters give general, glowing descriptions of the company rather than a balanced or truthful presentation.

Research suggests that recruitment can he made more effective through the use of realistic job previews (RJPs).52 A realistic job preview provides the prospective employee with pertinent information about the job without distortion or exaggerat;on. In traditional job previews, the job is presented as attractive, interesting, and imulating. Some jobs are all of these things. However, most jobs have some unattractive features.1 The RJP presents the full picture, warts and all, as suggested in Exhibit 7—4.

REALISTIC JOB PREVIEWS

Exhibit 7—4 presents the typical consequences of traditional previews versus realistic previews. Studies conducted at Southern New England Telephone, Prudential Insurance Co., Texas Instruments, and the U.S. Military Academy have used and reported on the RJP.4 The results indicated that: Newly hired employees who received RJPs have a higher rate of job survival than those hired using traditional previews. Employees hired after RjPs indicate higher satisfaction. RJPs can set the job expectations of new employees at realistic levels. RJPs do not reduce the flOW of highly capable applicants. These findings suggest that RJPs can be used as an inoculation against’disappointment with the realities of a job. At this stage of development, however, there is no conclusive evidence supporting the effectiveness of realistic job prcviews. Although it seems clear that RiPs can have beneficial effects, at present there is still uncertainty as to why RJPs have the effects they do and in what contexts they are likely to be the most effective.

An organization’s human resource plan may suggest that additional or replacement employees are needed. However, because of the cost and permanence of recruiting individuals, an alternative to recruitment may be used.

Overtime When a firm faces pressures to irleet a production goal, it may mean that employees need to work overtime. By having employees work overtime, organizations avoid the costs of recruiting and having additional employees. Overtime can also provide employees with additional income. However, there are potential problems: fatigue, increased accidents, and increased absenteeism. On a limited, short-term basis, having some employees work overtime may be an alternative to recruitment. Continuous overtime, though, has often resulted in higher labor costs and reduced productivity. Employee Leasing Employee leasing, sometimes called “staff sourcing,” involves paying a fee to a leasing company or professional employer organization (PEO) that handles payroll, employce benefits, and routine human resource management functions for the client company. Leasing is especially attractive to small and midsize firms that might not otherwise be able to afford a full-service human resources department. But while small businesses can expect to save from 15 to 30 percent of benefit costs such as health insurance premiums by using leased employees, care must he exercised in choosing a leasing company. In recent years, at least six leasing companies have gone bankrupt, leaving approximately 36,000 workers and hundreds of small businesses liable for millions of dollars associated with health care and other workers’ compensation claims.57 Temporary Employment One of the most noticeable effects of the downsizing epidemic and the labor shortages of the past two decades has been a dramatic rise in the usc of temporary employees. Historically, temporary employment agencies were seen only as sources of

ALTERNATIVES TO RECRUITMENT

Clark Kirby got prices of ads from all the Tampa papers, including suburban and ethnic papers. He also discussed the impact and readership of the papers with the human resource managers he’d befriended. On this basis, he chose the ajor Tampa afternoon aper, the leading black newspaper, the leading

C I.’ H I.. Li

Hispanic paper, and a suburban paper in an area c near the plant. He also investigated the ti leading radio stations and c selected the one that had in the highest rating of the top M three and the lowest commercial cost. He chose commuter times to run the C radio ads.The advertising Sl approach was innovative. Sc

luded The pay and working conditions offered at the r Tampa plant were competi- s tive. After Clark’s recruiting C campaign, he had the follow- n ing numbers of applicants: Managerial positions 68 hi Professional-technical I 0 Clerical 78 Skilled employees 110 Semjskilled employees 720

Clark notified Ed of the results.The job was now to select the best applicants. Clark knew that would be no easy job. Effective selection and hiring are the subjects of Chapter 8.

semiskilled clerical help (luring peak work periods. Today, “just—in-time” employees can be found staffing all types of )obS in organizations, including professional, technical, and higher executive positions.58 There are, in fact, nearly 7,000 temporary employment agencies across the United States that have been in business for more than one year.’’

The major advantages of temporary employees include relatively low labor costs, an easily accessible source of experienced labor, and flexibility in responding to future changes in the demand for workers.60 The cost advantage of using temporary help sterns from the fact that the organization does not have to provide fringe b nefits, training, or a compensation and career plan. The temporary worker can ye in and out of the firm when the workload requires such movement. A disadvantage of hiring temporary help is that these individuals do not know the culture or work flow of the firm. This unfamiliarity detracts from their commitment to organizational and departmental goals.

Many aspects of recruitment, such as the effectiveness of recruiters, can be evaluated. Organizations assign goals to recruiting by types of employees. For example, a goal for a recruiter might be to hire 350 unskilled and semiskilled employees, or 100 technicians, or 100 machinists, or 100 managerial employees per year. Then the organization can decide who are the best recruiters. They may he those who meet or exceed quotas and those whose recruits stay with the organization and are evaluated well by their superiors. Sources of recruirs can also be evaluated. In college recruiting, the organiza‘n can divide the number of job acceptances by the number of campus interviews compute the cost per hire at each college. Then it drops from the list those cain— [“uses that are not productive. The methods of recruiting that are used Lw a company can he evaluated along :ariotls dimensions. In addition, the Orgafli/atloli can calculat the cost of each

COST-BENEFIT ANALYSIS OF RECRUITING

PART I I Acquiring Human Resources

method (such as advertising) and divide it by the benefits it yields (acceptances of offers). The organization can also examine how much accurate job information was provided during the recruitment process. Another aspect of recruiting that can be evaluated is what is referred to as the quality of hire. This measure can provide management with an assessment of the quality of new employees being recruited and hired.6 I The quality—of—hire measure is calculated as follows: QH = (PR + HP + HR)/N where

where QH quality of recruits hired PR = average job performance ratings (20 items on scale) of new hirees (e.g., 4 on a 5-point scale or 20 items x 4) HP = percent of new hirees promoted within one year (such as 35 percent) 1-IR = percent of hirees retained after one year (e.g., 35 percent) N = number of indicators used Therefore.

= 66.6% The 66 percent quality-of-hire rate is a relative val-ue. It will be up to management to determine whether this represents an excellent, good, fair, or poor level. Some caution must he exercised with the quality-of-hire measure when evaluating the recruitment strategy. Performance ratings and promotion rates are all bey()nd the control of a recruiter. A good new employee can he driven away by a lack of opportunities for promotion, inequitable performance ratings, or job market conditions that have nothing to do with the effectiveness of the recruiter. Nevertheless, the quality-of-hire measure can provide some insight into the recruiter’s ability to attract employees.

This chapter has demonstrated the process whereby organizations recruit additional employees; suggested the importance of recruiting; and shown who recruits, where, and how. To summarize the major points covered in this chapter: 1. Recruiting is the set of activities an organization uses to attract job candidates who have the abilities and attitudes needed to help th organization achieve its objectives. 2. External factors that affect the recruiting process include influences such as government and union restrictions, the state of the labor market, the composition of the labor force, and the location of the organization.The passage of

3. Three factors affect recruiting from the organization’s viewpoint: recruiting requirements, organizational policies and procedures, and the organization’s image. 4. Applicants’ abilities, attitudes, and preferences, based on past work experiences and influences by parents, teachers, and others, affect them in two ways: how they set job preferences, and how they go about seeking a job. 5. In larger organizations, the HR department does the recruiting; in smaller organizations, multipurpose HR people or operating managers recruit and interview applicants. 6. Two sources of recruits could be used to fill needs for additional employees: present employees (internal) or those not presently affiliated with the organization (external). a. Internal sources can be tapped through the use of ‘ob posting and bidding; moonlighting by present employees;

C H A P T E R 7 Recruitment and seeking recommendations from present employees regarding friends who might fill vacancies. b. External sources include walk-ins, referrals from schools, and state employment offices. Alternatives to recruiting personnel when work must be completed include overtime, temporary employees, and employee leasing. in. S. Advertising, personal recruiting, computerized matching services, special-event recruiting, and summer internships are among the methods that can be used to recruit external II. applicants. ..-—.- £..

211 a. Showing a genuine interest in the applicant. 1. Being enthusiastic. Employing a style that is neither too personal nor too stressful. d. Allotting enough time for applicants’ comments and questions. 10. A better job of recruiting and matching employees to jobs will mean lower employee turnover and greater employee satisfaction and organizational effectiveness. II. The Internet is revolutionizing organizational recruitment and may become the primary job search tool in the coming years.

Caree rPa th.cum e- recruiting ciuployce leasing eiuploynicnt agencies executive search rms lmmigrarionReform and Control Act (1RCA) of 1986

job posting and bidding job search Monster.corn online recruiting realistic ob preview recrii itillent

1. What guidelines should be followed to make sure that recruitment advertising does not violate equal employment laws? Give some do’s and don’ts in recruiting interviews in terms of the legality of questions asked. .. What role do job descriptions and job specifications play in an effective recruitment program? 4. Considering that there are millions of resumes posted on the Web, what steps should recruiters follow to screen out unqualified candidates in a fair and nondiscriminatory manner? Explain your answer. c. What has led to an increased use of temporary employees in organizations? What are the major advantages of using temporary employees?

6. Discuss how the Internet has changed recruiting. 7. Describe a realistic job preview. How can it be used to reduce turnover? . Visit three different job search websites. Search for a job in a particular region of the United States.Which of the three websites is most useful to job seekers? Explain your answer. 9. What are the characteristics of an effective and an ineffective college recruiter? 10. What are the relative strengths and weaknesses of promotion from within as a recruitment technique?

HRM LEGAL ADVISOR Based on U.S. v. The City of Warren, 4ichgan, 138 F3d \X’arren’s labor force was compnscd of 0.2 percent African 108.3 (U.S. App. Sixth Ci,: 1998). Americans. The African American labor force in the remainder of Macomb County was 1 3 percent, while rhe Facts 1)etroits labor force was 59.7 percent African American. In Flie city of Warren, Michigan, is located in Macowl’ County, recruiting employees, \Varren placed advertisements in three adiaccnt to l)ctroit. (enus reports in 1980 indicated that newspapers that were circulated primarily in 1acomb

County and placed job postings in municipal buildings. Warren did not advertise municipal jobs in Detroit newspapers. Additionally, Wairen required applicants for all lobs except police and firefighters to be residents of Warren. As a result, the city’s municipal workforce was approximately I percent African American. In February of 1986, the U.S. Department of Justice notified the City of Warren that it planned to initiate an investigation of Warren’s recruiting practices, alleging that they potentially discriminated against African Americans on the basis of race. After its investigation indicating that Warren’s residency requirement and recruiting media had an adverse impact against African Americans, the United States filed a suit in district court alleging race discrimination under Title VII of the 1964 Civil Rights Act. The City of Warren argued that sparate impact analysis was not applicable to recruiting cricea The Court’s Decision The U.S. Court of Appeals for the Sixth Circuit ruled that the’ disparate impact theory of discrimination was applicable to

any “facially neutral pohcv with a discriminatory effect to Title VII.” Further, the court held that “Warren’s limitation of its applicant pool to the residents of the overwhelmingly white city, combined with its refusal to publicize jobs outside the racially homogeneous county, produced a de facto barrier between employment opportunities and members of a protected class.” Human Resource Implications A basic assumption of this case is that the City of Warren should have been recruiting employees from the greater Detroit area. The U.S. Supreme Court has indicated that a company’s proper geographic recruiting area should include locations from which applicants or employees are likely to commute. Companies should consider general commuting patterns as well as public transportation availability in determining where to recruit employees. Employers may avoid discrimination problems related to recruiting by ensuring that its internal and external recruiting tools are unbiased and sufficiently reach the company’s qualified labor market.

James A. Breaugh 1992), Recruitment: Science and Practice (Boston: Kent), p. 4. 2 Aaron Bernstein (May 2002), “Too Many Workers? Not for Long,” Busines:; Week, pp. 126—130. Glenn McEvoy and Mary Jo Blahna (September—Octobcr 2001), “Engagement or I)isengagement? Older Workers and the Looming Labor Shortage,” Business Horizons, pp. 46—52. Dean Foust (Decen her 2001), “A Smarter Squeeze,” Business Week, pp. 42—44. Peter Fraiiccse (ovcmhcr 2001), “Iooniing Labor Shortages,” Anzcrican Demographics, pp. 34—35; Shari Caudron (September 1999), “The Looming Leadership Crisis,” Work force, pp. 72—79. (;illiaii Finn (Sepn’mher 1995), “The Immigration Reform and Control Act Demands a Closer Look,” Personnel lournal, pp. 151 , 153; Wayne F. Barlow, Diane D. Hatch, and Betty Southard Murphy (April 1996), “Recent Legal Decisions Affect You,” Personnel Journal, p. 142. John Ivancevich and Jacqueline Gilbert (Spring 2000), “I)ivcrsitv Man;igement: Time for a New Approach,” Public Personnel Alanagement, pp. 75—92; Jacqueline A. Gilbert, &Ite Ann Stead, and John M. Ivancevich (August 1999), “I)iversity Management: A New Organizational Paradigm,” Journal of Business Ethics, pp. 61—7b

A Competitive \X’eapon,” Managenu’nt Review, pp. 24—30. J. Scott Lord (1989), “External and Internal Recruitment,” in Wayne F. Cascio (ed.), Human Resource’ Planning, Employment, & Placement (Washington, I)C: Bureau of National Affairs), pp. 73—102. Alexandra Harkavy (july—August 2000), “1)o I Really Want to Work for This Company?” Across the Board. pp. 14—19; Robert I). Gatewood, Mary A. Gowan, and Gary j. Lautcnschlager (April 1993), “Corporate Image, Recruitment Image, and Initial lob Choice Dcci Sions,” A cadem of Management Journal, pp. 414—427. Justin Fox (March 2002), “America’s Most Admired: What’s So Great about GE?” Fortune, pp. 64—67; Jeremy Kahn (October 11, 1999), “The World’s Most Admired Companies,” Fortune, pp. 267—268ff. 2 Gillian Flyim (August 1995), “Pop Quiz: How Do You Recruit the Best College Grads?” I’ersonnel Journal, pp.

12—18. Chad Fleetwood and Kristina Shelley (FaIl 2000), “1 he Outlook for College Graduates, 1998—2008: A Balancing Act,” ( )ccupatiunal ( )utlook Quart e’ilv, pp. 2—9. ‘ Matthew Mariani (Spring 1996), “Students Offer Views on Career ( lmices.” ()cczipatuozal ( )utlook Ouartcrlv,

° Edward 1). Bewayo (May 1990), “What College Recruits Expect of Employers,” Personnel, pp .30—34. 16 Susan Strauss, Jeffrey Miles, and Laurie Levesque (2001), “The Effects of Videoconference, Telephone, and Face-to-Face Media oil Interviewer and Applicant Judgments in Employment Interviews,” Journal of Management, pp. 363—381; Steven M. Ralston and Robert Brady (january 1994), “The Relative Influence of Interview Communication Satisfaction on Applicants’ Recruitment Interview Decisions,” Journal of Busmess Communication, pp. 61—77.

David Bowman and R. Kweskin (1990), Q: Hou’ Do I Find the Right Job (New York: Wiley). IN Hubert Field and William Holley (March 1976), “Resume Preparation: An Empirical Study of Personnel Managers’ PerLeptions,” Vocational Gi.,idance Journal, pp. 229—237. “ Jeffrey Kluger (June 2002), “Pumping Up Your Past,” Time, pp. 45—47. 2(1 Elaine McShulskis (August 1997), “Beware College Grads Willing to Lie for a lob,” HRMagazine, pp. 22—24. 4 21 Bill Leonard (April 1993), “Resume Databases to I)ominate Field,” HR Magazine. pp. 59—60. 4 22 Sandy Wayne and Robert Liden (February 1995), “Effects of Impression Management on Performance 4 Ratings,” Acade;nv of Manal,’enzent Journal, pp. 232—252. 25 Sara Rynes and Barry Gerhart (Spring 1990), “Interviewer Assessments of Applicant ‘Fit’: An Exploratory Investigation,” Personnel Psychology, pp. 13—36. 4 2 ilan Moravec (September 1990), “Effective Job Posting Fills Dual Needs,” HRMagazine, pp. 76—80. 25 Marc Hequet (April 1995), “The Amoco Plan,” Training, p. 31.

26 Bill Leonard (J lily 1997), “Rate of Moonlighting among

Workers Holds a Steady Pace,” HRMagazme, p. 10. 2 Carolyn Hirschrnan (October 2000), “Do You Need a Moonlighting Policy?” HRMagazine, pp. 46—54. 29 EEOC v. Detroit Edison Company (1975), U.S. Court of Appeals, Sixth Circuit (Cincinnati), 51SF. 2d .301. 29 Margaret Magnus (August 1986), “Recruitment Ad Vantages,” Personnel fournal, pp. .58—79. 50 Jennifer Koch MarcIi 1990), “Recruitment: Apple Ads Target Intellect,” Personnel fourizal, pp. 107—114. 0 Ruth Thaler-Carter (June 2001), “Diversify Your Recruitment Advertising,” HRMagaz;ne, pp. 92—100. 2 Marlene Piturro (JanLiary 2000), ‘The Power of E-cruiting,” Mana,’cuunt Rei’u’u’. pp. 33—37. ° AP Online (D.ember 3, 1999), “Employers Use \Veb to 12 rr,,rt ,n,fl,s,.,n,fl.r,n(, I

213 Piturro, op. cit., pp. 33—37. AP Online, op. cit. (December 3, 1999). Jon Swartz (February 19, 2001), “E-Recruiters Swim through a Sea of Resumes,” USA Today, p. 3B. Shirley Duglin Kennedy (July—August 1996), “Need a New lob? (jet to Work on the Web,” Information Today, pp. 38—39. Samuel Greengard (March 1996), “10 Tips for Getting Net Results,” Personnel Journal, p. 28.

J. Scott Lord (1989), “External and Internal Recruitn1ent,” in Wayne F. Cascio (ed.), Human Resource Plannin’, Einplo’,’nient, and Placement (Washington, DC: Bureau of National Affairs), pp. 73—102. ° Martha Frase-Blunt (April 2002), “Job Fair Challenges for HR,” HRMagazine, pp. 62—66. Andrew Bargerstoek (August 1 990), “Low Cost Recruiting for Quality,” 1-IRMagazine, pp. 68—(). ° Bibi S. Watson (June 1995), “The Intern Turnaround,” Management Review, pp. 9—12. ‘ Steart Deck (March 2000), “6 1)cgrees of Hire

Learning,” Cio, pp. 132—140. jilly Welch (September 12, 1996), “Eniplovers in Rush to Capture Young Talent,” Personnel Management, p. 9. Michelle Neely Martinez (March 1996), “Looking for Young Talent? Inroads Helps Diversify Efforts,” HR Magazine, pp. 73—76. °‘ Dawn Gunsch (September 1993), “Comprehensive College Strategy Strengthens NCR’s Recruitment,” Personnel Journal, pp. 58—62. [)avid E. Terpstra (May 1996), “The Search for Effective Methods,” HR Focus, pp. 16—17.

Thomas .1. Bergman and M. Susan Taylor (May—June 1984), “College Recruitment: What Attracts Students to Organizations,” Personnel, pp. 34—36. Watson, op. cit., pp. 9—12. Jnhn Botidreau and Sara Rvnes (March 1987), “Giving It the Old Cullege Try,” f’ersonnel Administrator, PP 78—85. Andrea Poe (May 2000), “Face Value,” HRMagazzne, pp. 60—68; Therese Hoff Macan and Robert L. Dipbove (Winter 1990), “The Relationship of Interviewers’ I’reinterview Impressions to Selection and Recruitment Outcomes,” Personnel Psycholo,ç’, pp. 745—76 8. Jean M. Phillips (December 1998), “Effects of Realistic Job Previews on Multiple Organizitioial Outcomes: A Meta-Analysis,” Academy of Management foidYlhil, pp. 6 73—6 90. Larry Reibstein (June 10, 1987), “Crushed Hopes: When a New lob Proves to Be Something 1)1 ffercnt,” TI,,, W7 ,II c ,,, i,,,.,,, I ,—. I ç

P. Popovich and John P. Wanous (October 1982), “The Realistic Job Preview as a Persuasive Communication,” Academy of Management Review, Pp. 570—578. SS Steven L. Premack and John P. Wanous (December 1985), “A Meta-Analysis of Realistic Job Preview Experiments,” Journal of Applied Psvcholog, pp. 706—719; and James A. Breaugh (October 1983), “Realistic Job Previews: A Critical Appraisal and Future Research Directions,” Academy of Management Ret’ieu pp. 612—6 19. Rrian Kiass, John McClendon, and Thomas C;amer ($pring 2002), “Trust and the Role of Professional Erp1oyer Organizations: Managing HR in Small and Medium Enterprises,” journal of Managerial Issues, pp. 31—48; John Poison (Spring 2002), “The PEO Phenomenon: Co-Employment at Work,” Employee Relations Law Journal. pp. 7L25; T. Joe Willey (Winter 1993), “Employee Leasing Comes of Age,” Human Resources Professional, pp. 1 8—20.

Rosalind Resnick (November 1992). “Leasing Workers,” Nations Business, pp. 20—28. Brenda Paik Sunoo (April 1996), “From Santa to CEO—Temps Play All Roles,” Personnel journal, pp. 34—44. Brenda Paik Sunoo (April 1999). “Temp Firms Turn Up the Heat on Hiring,” W/ork/orce, pp. 50—54. George S. Odiorne (July 1990), “Beating the 1990s’ Labor Shortage,” Training, pp. 32—35. 61 This measure was developed by Jac Fitz-Enz (1984) in Hou’ to Measure Human ResOurce Management (New York: McGraw-Hill), pp. 86—87.

In a time when many companies are cutting costs across their operations, a growing number of HR departments are changing the ways they recruit.Their goal: to boost recruiting efficiency(reducing recruiting costs per hp-e).Their means: i vative recruiting approaches that bring imagination and a essiveness to a company’s overall recruiting function. Inno ations are occurring in several elements of the recruiting process. Here is a look at innovations in several areas.

RECRUITMENT ADVERTISING An increasing number of companies are supplementing and even replacing the traditional classified ad with creative, clever, eye-catching ads. These ads are essentially a company’s resume and cover letteidesigned to send ainique and memorable message about the company to sought-after prospective applicants Recently, Pers,nneI journal reviewed several hundred ads submitted by subscribers and reported some trends in this type of advertising. IThey include:

I. Use of Employees in Ads instead of the traditional testimonials, more company ads are spotlighting employees, g about their skills, jobs, and accomplishments. For e pie, General Dynamics has run a series of ads that, by comparisons with great inventors, compliments profiled employees and their colleagues. For example, one ad headline in the series proclaims, “We’re looking for another Newton • . . And another Newman” (Howard Newman, one of General Dynamic’s senior project engineers).The ad’s text showcases Mr. Newman’s accomplishments and long tenure with the company and then urges those interested and qualified to “join Howard. in the pursuit of technology excellence and discovery; apply for a position with us... . Who knows You might become the next Newman.” In some other ads in the series, General Dynamics has declared, “W’e’re looking for another Edison . . . And another Hardison’ (electrical engineer Cor’ine Hardison). Like many employee-spotlight ads developed by other companies, this series portrays the corporation as a place where very talented and dedicated people work and reach their potential.

2. Promotion of Intangible Benefits In cases where a job is highly attractive and thus doesn’t need promoting, employers have turned to emphasizing certain intangible benefits of the company such aportunitiesfQç adva,,cement, eoyment security, cive freedom, and et?%preneurial opportunities. Lockheed Miss,le & Space Company has run a series of sports-related ads that promote company benefits. One such ad is entitled “Net Gain:’ Featuring a tennis racket and tennis balls in a partly closed briefcase, the text says, “Along with a diverse and challenging project list, Lockheed Missile & Space Company makes a point-of providing employees with truly comprehensive recreational programs and facilities.” The Saint Paul Medical Center has developed a series of one-word headline ads that promote certain themes such as “Cornrnitrnent’ (describing the center’s commitment to patients’ care and employees’ career development) and “Balance” (“Between caring professionals . . . between traditjqn and technology . .. between performance and opportunity”).Washington University in Saint Louis uses creative advertising to promote its flexible work schedules, and in one ad entitled,”Even you-know-who rested on the seventh day,” the company published its nursing salaries.

3, Point-of-Purchase Recruitment A growing number of service companies with high turnover in low-skill jobs are recruiti9g using point-of-purchase ads. For example, Pizza Hut places recruiting coupons on its carry-out boxes. Featuring a drawing of a large lead pencil, the ad suggests, “If you want a good job, get the lead out.” The coupon provides a mini- resume form for prospective applicants who don’t have resumes.The Quik Wok Chinese food take-out chain uses Written by Kim Stewart and adapted from: Bob Martin (August 1 987). “Recruitment Ad Ventures,” Personnel Journal, pp. 46—54;J. Scott Lord (November 1987),”Contract Recruiting Comes ofAge,”Personnel Administrator, pp. 49—53;Maury Hanigan (November 1987), “Campus Recruiters Upgrade Their Pitch.” Personnel Administrator, pp. 55—58: and Margaret Magnus (February 1987), (s Your Recruitment All It Can Be?” Personnel Journal, pp. 54--63.

bag-stuffers that picture a broken fortune cookie and proclaim “Not everyone will have the good fortune to work at Quik Wok.” The stuffer describes job opportunities.The success of point-of-purchase ads has eliminated Quik Wok’s use of classified ads. Other users have found the strategy to be a low-cost, highly efficient, and flexible form of recruiting; when a new position needs to be filled, they simply distribute the bag stuffers.

CONTRACT RECRUITING Companies in fast-growing industries are seeking the expertise of a relatively new type of external specialist: the contract recruiter.This specialist is contracted on a temporary basis to •erform recruiting functions for different job openings.The recruiter screens resumes, conducts telephone and in-person interviews, coordinates campus recruiting. prepares and executes formal offers, and performs any number of contractual recruiting responsibilities. He or she is not affiliated with an employment agency and does not receive a commission or a percentage of the hiree’s salary. Rather, the recruiter is self- employed and is paid at an hourly rate negotiated with the client company. These self-employed specialists are becoming popular because they can provide several benefits to client companies. When a company is undergoing exceptionally fast growth with immediate hiring needs, a recruiter can be quickly brought in to handle the suddenly burdensome task. The recruiting is performed without hiring permanent (and later unnecessary) staff. For example, when GTE in Needham, Massachusetts, suddenly found itself with a Department of •efense contract requiring 1,200 professional employees to be hired in 16 months, GTE turned to 12 contract recruiters who became an instant employment department.They set up the system, completed the task, and then trained their replacements before departing 16 months later.The cosmetics manufacturer Helene Curtis, Inc., regularly calls on contract recruiters to help the company handle its 15 to 20 percent yearly growth. Recruiters can also serve as external, objective advisers to the company’s human resource function. Some contract recruiters develop expertise in certain employment fields (such as electrical engineering or computer software design).

Companies with hiring needs in these areas benefit from the specialists’ contacts and highly focused capabilities. Some companies hire the same recruiters time and again, finding that the subsequent knowledge of the company’s recruiting needs and functions that the recruiter acquires helps to further reduce per-hire costs.

CAMPUS RECRUITING With declining college enrollments and growing demand for recruits with college degrees, companies are finding that recruiting on college campuses has become very competitive. As a result, many are launching strategies to both boost their offer-acceptance rates and lower their recruiting costs. Rather than select recruits from the placement office’s resume file, some companies are identifying a number of students in their junior year and focusing efforts on these select recruits. More firms are establishing programs that educate professors more fully on the company’s career opportunities for graduates. For example, Macy’s brings professors to a showcase store where the educators spend a day observing trainees and meeting with managers. Other companies, such as Citibank, hire professors to lecture in the company’s training programs. Organizations such as Texas Instruments also provide executives as guest lecturers at several universities. These actions are designed to enhance the professor’s knowledge of the company, which it is hoped will be communicated to students, and to develop executives’ relationships with certain schools. Some companies are also refining their recruitment brochures. Rather than providing the traditional, very general brochure on the company, firms are now developing smaller, more individualized publications that provide information on particular jobs and departments and information on the community where a prospective applicant would work (for instance, information on cost of living and community recreation facilities). Invitation letters to a campus interview are personalized, often explaining why the company is interested in that particular student. More companies are producing recruiting videos for show on campus. Companies are also paying more attention to the quality of their on-campus interviewers, providing their recruiters with training in communications skills. And many firms are replacing the form rejection letter with one that is more tactful and considerate. Firms are mindful of the impact that a word-of-mouth reputation created by an inconsiderate, uninterested recruiter can have on a company’s campus recruiting efforts.

COMPUTER DATABASES Computer databases are being developed as job and resume data banks. For example, Job Stores, Inc., has developed a franchise chain of “stop and shop” employment centers located in high-traffic shopping malls. At any center, a job hunter can tap the Job Stores Network computer database by obtaining a computer printout on job openings in the local area and nationwide.The fee: $75 for 90 days’ access to the network. Any company can list its job openings on the net- s work at no charge. In seeking participation from businesses, f Job Stores’ franchises focus on job openings that companies ii usually don’t fill via employment agencies. c JobNet, another computer database network, allows job hunters to place their resumes in the network at no charge. C Companies pay a fee for access to the database, which has over I million resumes of technical professionals onhine.A company can search the database by specifying any of a number of criteria, such as how recent the resume is. Career Technologies runs the network and obtains resumes via job fairs, advertising, and exclusive contracts with over 20 profes.onalassociations and societies. Some college placement centers are also establishing computer databases to link students with prospective jobs. For example, the Career Connection Company of State College, Pennsylvania, has established Job Search, a computer database of job information.The network provides job listings (up to 20 lines each provided by companies) and is available for all students. EMPLOYEE REFERRALS Lastly, companies are adding pizzazz to the widely used employee referral and bounty system. A growing number of

companies are aggressively promoting referral campaigns with special themes and prizes. Referral bonuses run the gamut from money and trips to time off and credit used to “buy” items from a special catalog. Many referral programs are periodically given a boost with new bonuses and new themes. DISCUSSION QUESTIONS I. Assess the effectiveness of a recruitment advertising strategy that relies on imaginative, highly visual, eye- catching ads.What are the potential strengths and drawbacks of this approach to recruitment advertising? 2. What type of company (in what kind of industry) would benefit most from contract recruiters? What type would benefit least? 3. Suppose you are faced with the task of developing a college recruiting strategy for obtaining talented business school graduates with degrees in management information systems (developing and managing a company computer information network). Demand for these individuals is currently very high; supply is limited. Develop a recruiting strategy that addresses innovations discussed in the case and includes your own ideas.

Clark Kirby and his assistants had recruited 986 applicants for the 596 positions Gunther would have at its Tampa plant. But before getting too satisfl,ed, he realized that there wa a big job ahead of him.Which 596 of the 986 should be .red?And who should do e hiring? The HR specialist had

done some preliminary screening, and most of the applicants had completed an application blank. But where should he go from there Clark called Ed Humphrey, the plant manager, and asked if he wanted to be involved in the hiring. Ed said that he had time to choose only his top management

team.The rest was up to Clark. Ed r reminded Clark that the company didn’t want them c to raid other plants—that c was simply against company s policy. Clark said he knew 1 that and would abide by c company policy, a Clark was faced with r making 596 selection l decisions. As this chapter I shows, selection involves making many decisions. Selection is a vital and continuous process in an organizaton. Employee selection is important because the goals of the organization can be accomplished only if the right match is made between the person and the job.

Selection is the process by which an organization chooses from a list of applicants the person or persons who best meet the selection criteria for the position available, :)nsidering current environmental conditions. Although this definition emphasizes the effectiveness of selection, decisions about whom to hire must also be made efficiently and within the boundaries set forth in equal employment opportunity legision. Thus, there are actually multiple goals associated with an Organization’s 5Cion process. At a basic level, all selection programs attempt to identify the applicants who have the highest chance of meeting or exceeding the organization’s standards of perormance. In this case, however, performance does not refer simply to quantity of ‘urput. It can also involve other objectives, such as quality of output, absenteeism, heft, employees’ satisfaction, and career development. Compounding the problem uf developing an effective selection system is the fact that the goal isn’t always to find applicants who have the most of a given quality. Rather, selection is the search for an optimal match between the job and the amount of any particular characteristic that an applicant may possess. For example, depending on the job, more intelligence isn’t always better than less. Or, it is possible for an applicant to he too socially skilled if the job doesn’t require high levels of such skills.’ This situation can easily lead to the selection of overqualified candidates.2 Thus, it is highly unlikely that a selection system can effectively cope with all possible objectives. As a result, ic of the initial tasks involved in developing and implementing an effective selecrn process is for the organization to identify which objective is most important for

As Clark Kirby sets out to hire 596 employees, he will follow a selection process infhienced by many actorc. Ihese tactors are highlighted in the diagnostic model in Exhibit 8—1. We’ll begin by examining the factors in the internal and external environments.

Environmental Circumstances Influencing Selection Internal environment A number of characteristics of the organization can influence the amount and type of selection process it uses to hire needed employees. Size, complexity, and technological volatility are a few of these.Since the development and implementation of large-scale selection efforts can 1w very costly, complex selection systems are most often found in larger organizations with the economic resources necessary to pay for such systems. Size alone, however, doesn’t deteriiiine how selection is approached. For an organization to recover the costs of developing an expensive selection system, there must be a suftcient number of jobs that need to be

C H A P T E R 8 Selection filled. In structurally complex organizations with many job titles hut very few occupants, the number of years needed to get back the money invested in such a selection system may be too great to justify its initial expense. Another characteristic of the organization that is an important determinant of the kind of selection system it develops is its attitude about hiring from within. Many organizations have elaborate internal job posting programs (as was discussed in Chapter 7) designed to help fill as many job vacancies as possible from within. other organizations look more quickly to external supplies of new employees. While these two models of filling job vacancies will have some overlapping selection processes, each will also focus to some extent on different criteria and different techniques:

External environment The external environment is an equally important determinant of the kind of selection system that an organization utilizes. Not only are most organizations subject to federal employment laws and regulations, hut there are •ny state-specific regulations that also affect what an organization can and cannot do in its selection system. Some states, for example, have imposed much tighter limits than others Ofl an organization’s ability to test applicants for drug use. Similarly, a number of states provide past employers with more protection against being sued by a former employee because of information that may have been divulged during checking of references. Any or all of these state-specific issues can affect the selection system that is ultimately used. One of the most significant environmental influences on selection is the size, composition, and availability of local labor markets. These, in turn, are affected by economic, social, and political pressures on a community. At a basic level, when unemployment rates are low, it may he difficult for an organization to identify, attract, and hire the number of people it needs. On the other hand, when there is an oversupply of qualified applicants, selection strategies can be very different. Those who work in human resource management evaluate the effects of the labor market on selection decisions by using a selection ratio:

number of applicants hired Selection ratio = total number of applicants Consider Clark Kirby’s problem at Gunther. The selection ratios are as follows: managers 38/68, or about 1:2; professional/technical, 10/10, or 1:1; clerical, 44/78, or about 1:2; skilled, 104/110, or about 1:1; semiskilled, 400/720, or almost 1:2. When the selection ratio gets close to 1:1, it is called a high selection ratio. Under these circumstances, the selection process is short and unsophisticated, although it may not he effective. As the number of applicants increases relative to the number who are hired, the selection ratio is said to he low. With a lower selection ratio, for example 1:2, the process becomes more detailed. A ratio of 1:2 also means that the organization can he more selective in its choice than when the ratio is 1:1. It is, therefore, more likely that employees who fit the organization’s criteria for success will be hired. It is also. likely, however, that the Organization will have to invest more time and money in the selection decision when the ratio is 1:2. • At the core of any effective selection system is an understanding of what characteristics are essential for high performance. This is where the critical role of oh analysis in selection becomes most apparent, because that list of characteristics should have been identified diirig the process of job analysis and should now he accurately reflected in the job specification. Thus, from a performance perspective, the goal of

any selection system is to accurately determine which applicants possess the knowledge, skills, abilities, and other characteristics (KSAOs) dictated by the job. Additionally, the selection system must he capable of disi:inguishing between characteristics that are needed at the time of hiring, those that are systematically acquired during training, and those that are routinely developed after a person has been placed on the job. Different selection criteria may, indeed, be needed to assess these qualitatively different KSAOs.

Categories of Criteria With these potential differences in mind, the criteria typically used by organizations for making selection decisions can be sunimrized in several broad categories: education, experience, physical characteristics, and other personal characterjstics.

Formal education An employer selecting from a pooi of job applicants wants to nd the person who has the right abilities and attitudes to be successful. A large number of cognitive, motor, physical, and interpersonal attributes are present becauseofgenetic predispositions and because they were learned at home, at school, on the job, and so on. One of the more common cost-effective ways to screen for many of these abilities is by using educational accomplishment as a surrogate for or summary of the measures of those abilities. For example, although this is unfortunately not always true, it usually is safe to assume that anyone who has successfully completed high school or its equivalent has basic reading, writing, arithmetic, and interpersonal skills. For certain jobs, the employer may stipulate that the education (especially for college-level requirements) is in a particular area of expertise, such as accounting or management. The employer might also prefer that the degree be from certain institutions, that the grade point average b higher than some minimum, and that certain honorshave been achieved. To he legal, educational standards such as these must be related to successful performance of the job. Care must be exercised not to set standards that are higher than actually required by the job.

Experience and past performance Another useful criterion for selecting employees is experience and past performance. Many selection specialists believe that past performance on a similar job might be one of the best indicators of future performance. In addition, employers often consider experience to be a good indicator of ability and work-related attitudes. Their reasoning is that a prospective employee who has performed the job before and is applying for a similar job must like the work and must be able to do the job well. Research supports these assumptions. Over a large number of studies, experience is related to job performance.3 But the organization must have a rational basis for defining what it means by “relevant experience.” Not all previous experiences are equally good predictors of performance on a given job. For example, should two applicants applying for a job as an internal auditor he given the same credit for previous work experience if both have five years in the accounting profession but one has been an auditor for another organization and the other a tax specialist for the IRS?

Physical characteristics In the past, many employers consciously or unconsciously used physical characteristics (including how an applicant looked) as a criterion. Studies found that employers were more likely to hire and pay better ages to taller men, and airlines chose flight attendants and companies hired receptionists on the

variation against ethnic groups, women, and handicapped people. For this reason, they are now illegal unless it can be shown that a physical characteristic is directly related to effectiveness at work. For example, visual acuity (eyesight) would he a physical characteristic that could he used to hire commercial airline pilots. It might not, however, be legally used for hiring a telephone reservations agent for an airline. In a similar way, candidates for a job cannot he screened out by arbitrary height, weight, or similar requirements. These can be used as selection criteria only when the job involves tasks that require them.

Personal characteristics and personality type The final criterion category is a catchall that includes personal characteristics and personality types. Personal characteristics include marital status, sex, age, and so on. Some employers have, for example, preferred “stable” married employees over single people because they have assumed that married people have a lower turnover rate. On the other hand, other employrs might seek out single people for some jobs, since a single person might be more ely to accept a transfer or a lengthy overseas assignment. Age, too, has sometimes been used as a criterion. While it is illegal to discriminate against people who are over the age of 40, there is no federal law that specifically addresses this issue for younger people. However, minimum and maximum age restrictions for jobs can be used only if they are clearly job-related. Thus, age should be used as a selection criterion only after very careful thought and consideration. This issue will certainly become more important by the year 2010; this is when the median age in the United States will he 40.6 years. By that time, more than half of all Ameri.an workers will be legally protected by the Age Discrimination in Employment Act (ADEA).4 Certain specific aptitudes and skills can also be considered part of this category of criteria. Although education and past experience are often used as measures of ability, many organizations also try to assess whether applicants possess certain aptitudes. For example, a successful applicant for pilot training in the military does not need actual flying experience. Rather, the military uses spatial-relations aptitude as one criterion. , Many employers also prefer to hire people with certain personality types. me jobs, such as being a lifeguard, may require essentially no consideration of an applicant’s personality. Many jobs fall between these extremes. For example, one particular aspect of personality—such as being outgoing—may be useful for salespeople, caseworkers, or others who work extensively with the public. Although once viewed in an unfavorable light due to perceptions of low preJictive validity, recent findings on personality tests have been much more positive regarding the link between personality and job performance.5 Much of this change can be attributed to the development and validation of the Big Five personality factors. Known as emotional stability, extroversion, openness to experience, agreeableness, and conscientiousness, the Big Five describe behavioral traits that may explain up to 75 percent of an individual’s personaliry.h Of the five dimensions, con— scientiousness and emotional stability have been shown to predict performance across most occupational groupings.7 As with other personal characteristics, selection using any aspect of personalty should always he based on whether it is really necessary for high performance. Many personality measures run an even greater risk of being legally challenged as an invasion of privacy than other kinds of selection tools. Thus, the organization wishing to use personality as a criterion must he certain that successful and unsuccessful employees can he distinguished in terms of their personalities. It is probably

P A R T I I Acquiring Human Resources unwise to use personality asa general criterion for screening out “undesirable” applicants, since the same personality characteristic that leads to failure in one job might lead to success in another. En part, because of this fact, there is still considerable debate whether general, broad personality measures or more specific ones are the best to use in selection.9

Reliability and Validity of Selection Criteria Once an organization has decided upon a set of selection criteria, a technique for assessing each of these must be chosen. The alternatives are numerous: application blanks and biodata forms, interviews, psychological tests of aptitude and personality, work sample tests of present skills, physical and medical testing, and checks of previous experience through references. Regardless of the method chosen for collecting information about applicants, the organization must be certain that the information is both reliable and valid.

Reliability The main goal of selection is to make accurate predictions about people. The organization wants to make its best guess about who will he a successful employee. In this way, the organization can avoid hiring the wrong person for a job. In other words, the main purpose of selection is to make decisions about people. If these decisions are going to be correct, the techniques used for making them must yield reliable information. Reliability refers to how stable or repeatable a measurement is over a variety of testing conditions. 0 As a simple example, imagine that you tried to use a tape measure to determine how tall an applicant for a job as a refighter was, because there are both minimum and maximum height restrictions for the job. If you measured a given applicant three successive times and obtained values of 6 feet, 6 feet 1/2 inch, and 5 feet II / inches, you may not know the applicant’s exact height, but you would have a fairly good idea. On the other hand, imagine that your three attempts yielded values of 6 feet, 6 feet 6 inches, and 5 feet 4 inches. In this latter case, you would have virtually no idea how tall the applicant actually was. The point is that although reliability is rarely perfect, a measuring tool can still he useful if it is only somewhat unreliable. Once the measurements become too inconsistent, however, they become meaningless. The reliability of a selection tool can he judged in a variety of ways. In practice, one common way to assess reliability is to correlate the scores of applicants given the same test on two different occasions. This is called test-retest reliabilit. Alternative-form reliabilit’ is determined by correlating scores from two alternate forms of the same test. Most standardized academic achievement tests like the SAT and the GMAT have numerous forms, all of which are assumed to be reliable. An applicant’s score should not vary much according to which form of the test he or she happens to take. When a measuring tool relies on the judgments of people (such as in an employment interview), reliability is often determined by using interrater reliability. This refers to the extent to which two or more interviewers’ assessments are consistent with each other.

Validity For a selection tool to be useful, it is not sufficient for it to be repeatable or stable. Both legally and organizationally, the measures that it yields must also be valid. There are many ways of assessing validity but all of them focus on two iSSUeS. Validity addresses the questions of what a test measures and how well it has measured it. II In selection, the primary concern is whether the assessment technique results in accurate predictions about the future success or failure of an applicant.

C H A P T E H 8 Selection To illustrate these two issues and the relationship between validity and reliability, let’s return to our example of measuring the frcfghter applicant’s height. As noted previously, if the measurement is too unreliable, then it will be impossible to determine his or her correct height. Even if the tape gives the same measurements (high reliability), it might still have very little accuracy (validity). For example, the tape measure may no: have been calibrated properly at the factory where it was made (the manufacturer may have thought it was marking in feet and inches when it was actually using centimeters). If so, it will be almost impossible to accurately determine the applicant’s height. Finally, this tape measure might he perfectly reliable and an accurate way to measure height, hut if you try to weigh applicants with it, it will yield totally Llseiess information. To summarize, for a measuring tool to be useful, it must be reliable, valid, and put to the use for which it was actually intended. A detailed explanation of the various strategies for determining the validity of election tool can he found in the Principles for the Validation and Use of Peronizel Selection Procedures, a set of professional standards developed by a committee of members from the Society for Industrial and Organizational Psychology (SIOP).12 The following, however, are brief descriptions of three types of validity that the HR specialist should be familiar with: (1) content, (2) construct, and (3) criterion-related.

Content validity The degree to which a test, interview, or performance evaluation measures the skill, knowledge, or ability to perform the job is called content validity. An example of a content-valid test is a typing test for a secretarial position. Such a test can roughly replicate conditions on the job. The applicant can be given a typical sample of typing work under “normal” working conditions. Thus, the applicant would be asked to type a typical piece of work (letter, internal memo, tabular data) using the same kind of typewriter or word processor that would he encountered on the actual job. If the content of the typing test is actually representative of the work that is done on the job, then the test is said to be content-valid. Content validity is not appropriate for more abstract job behaviors, such as , dership potential, leadership style, or work ethic. When selection procedures in- ye the use of tests to measure leadership characteristics or personality, construct validity rather than content validity is appropriate.

Construct validity A construct is a trait that is not typically observable. For example, we cannot see leadership; we can only assume that it exists from the behavior someone displays. A test therefore has construct validity when ii actually measures the unobservable trait that it claims to measure. Because traits cannot be directly observed, however, construct validity cannot be established in a single study but can be assumed to exist only on the basis of a large body of empirical work yielding consistent results. The Uniform Guidelines on Employee Selection Procedures have established three stringent requirements for demonstrating the construct validity of a selection technique. 4 I. A job analysis must systematically dene both the work behaviors involved in the job and the constructs that are believed to he important to job performance. 2. The test must measure one of those constructs. In selecting a project manager, for instance, there must be evidence that the test validly measures leadership. For evample, scores on the test might correlate with leadership

ratings given to other employeCS in other organizations Upon previous administration of the test. 3. The construct must be related to the performance of critical work behavior. For example, it must be shown that leadership ability is correlated with job performance for the position of project manager. That is, it is necessary to conduct a criterion validity study between leadership and job performance, or to use such data collected by another test to support the claim of construct validity.

Criterion-related validity The extent to which a selection technique can accurately predict one or more imp(’rtanr elements of job behavior is referred to as criterion—related validity. Scores on a test or performance in some simulated exercise are correlated with measures of actual on-the-job performance. The test is called a Predictor; the performance score is referred to as a criterion. Criteria relevant to personnel selection include measures such as quality or quantity of output, supervisory ratings, absenteeism, accidents, sales, or whatever the organization deems most relevant. However, the choice of a criterion is’at the very heart of determining whether a selection system is legal.’5 The organization must exercise care in choosing a measure that best reflects the actual contributions of employees to its effectiveness. Not all criteria can be predicted equally well from any particular type of selection tool. ‘ Two popularly used types of criterion-related validity are predictive and concurrent. Predictive validity is determined by using the scores obtained from a sample of applicants for a job. The steps in a predictive-validity study for a given test are: 1. Administer the test to a large sample of applicants. 2. Select individuals for the job. It is actually preferable if the test whose validity is being measured is not used in the hiring decisions. 3. Wait an appropriate amount of time and then collect measures of job performance. 4. Assess the strength of the predictor-criterion relationship (typically by calculating a correlation coefficient). Predictive validity is an important form of criterion-related validity, but it does have drawbacks. The employer first must wait until it has hired a large number of people for whom it has predictor scores and then until it can obtain meaningful measures of job performance for the people who were hired. For some jobs, the time it takes to determine who is a good employee can he long. Concurrent validity is also used to determine whether a selection test can predict job performance. In concurrent validation, the first step is to administer the tests to present employees performing the job. At approximately the same time, performance measures for thes employees are also collected. The test scores are then correlated with the performance measures. If the test is significantly related to performance, it would be a candidate for future use with applicants in the selection process. The biggest advantage of concurrent validation is tlat it can be conducted relatively quickly. Therefore, it is usully less expensive than predictive validation. However, there are several potential problems associated with the use of concurrent validation. First, this method uses experienced employees. If experience is important in job performance, such validation will be biased in favor of applicants with experience. Second. present employees often balk at completing tests. They are puzzled by the request to take a battery of tests and often wi11 not provide honest answers or

THE SELECTION PROCESS

their best answers. Third, there is a self-selection bias that can restrict the range of test scores. Among present employees, there is likely to he a restriction because the least skilled and least able workers have been terminated, demoted, or transferred, the most skilled and most able have been placed in more responsible jobs. Despite these potential problems, concurrent validation can be an effective method for assessing the validity of certain kinds of selection tests.’7 However, it should not automatically be used as an alternative to predictive validation simply because it can he done more quickly. The organization should carefully analyze its circumstances before choosing which of the methods to use.

In the past, selection was often thought to be an easy decision. Decisions were

based on the subjective likes or dislikes of the boss. Selection tools were designed to aid this gut reaction. Today, selection is viewed as much more than simply relying on Intuition.

The selection decision is usually perceived as a series of steps through which applicants pass. At each step, more applicants are screened out by the organization, or more applicants accept other job offers and drop from the list of applicanfs. Exhibit 8—2 illustrates a typical series of steps for the selection process. This series is not universal. For example, government employers test at step 2 instead of step 3, as do some private- and third-sector employers. It is important to note that few organizations use all steps, for they can he time-consuming and cxpensive and some steps, such as 3 and 4, may he performed concurrently or at

about the same time. Generally speaking, the more important the job, the more each step is likely to he used formally.

Step I: Preliminary Screening The most common first step in any selection process usually involves asking an applicant to complete an application form. Application blanks, as these are typically referred to, vary in length and sophistication. Nearly all application blanks ask for enough information to determine whether the individual is minimally qualified for the position. For example, application blanks can he a useful initial screening tool for jobs that require some type of professional certification (e.g., a teaching certificate). In this way, the application blank can eliminate the need for subsequent interviews to gather this information. This makes the selection process far more efficient, first, by reducing the number of applicants that need to be interviewed and, second, by allowing interviewers to focus on other kinds of information (e.g., personality, communication skills) that is perhaps more difficult to obtain. Although application blanks can he very useful selection tools, organizations must never forget that they are subject to the same legal standards as any other Selection method. Thus, care must be taken that the application blank does not directl or indirectly violate federal or state laws related to employment discrimination. The same guidelines hold true for Web-based or online applications.’9 The application blank should not he designed in a way that forces applicants to reveal irrelevant information about themselves, especially information related to sex, race, religion, color, natural origin, age, or disabilitie. Care should be taken to ask only for information that will help the organization make a better job-related assessment of the applicant. For example, asking applicants for the year in which they graduated from high school can narrow down their age to within one or two years. Is it important to know in what year someone graduated, or simply that he or she graduated? Currently accepted application blanks also generally limit questions that imply something about the applicant’s physical health. Since a physical exam should be given only after a conditional offer of employment, the application blank is not an appropriate place to gather most information of this kind. With a dramatic increase in the number of lawsuits being filed against organizations for “wrongful termination” and with an erosion of organizations’ right to hire and fire whomever they wish, many organizations arc now adding very important clauses at the beginning or end of their application blanks. Some terms of these clauses appear in employee handbooks as well. The purpose of the clauses, regardless of where the’ appear, is twofold. First, they help protect the organization against unjustified lawsuits; and second, they help ensure that applicants and employees understand the terms of their employment relationship with the organization. Three of the more common clauses that now appear on application blanks and in employee handbooks cover (1) applicant’s rights as they relate to the organization’s hiring practices, (2) the scope of an employment contract, and (3) (one of the newest) grievances: a statement indicating that the applicant, the employee, or both agree to resolve all grievances against the organization through arbitration and mediation rather than through a lawsuit. The legal subtleties of these clauses arc too complex to cover in detail at this time, but examples of the wording currently h’ing used by organizations appear in Exhibit 8—3. A potentially useful supplement to the traditional application blank is the biographical information blank (131B). A BIB usually contains many more items than a

THE NOT-SO-FINE PRINT OF MODERN APPLICATION BLANI Statement on Affirmative Action-Equal Employment Opportunity It is the policy of this company to afford all applicants the right to equal employment opportunities. In accordance with this policy, all vacancies will he llcd by qualied candidates without regard to race, color, religion, sex, age, national origin, or disabi litv status except where there is a bona fde occupational qualihcation. It you are disabled and need reasonable forms of accommodation in order to complete this application blank or any other component ot the application process, they will he provided. Statement on Employment at Will If you are offered and accept employment with this companY, your employment wi11 be corsidered “at will.” It can therefore terminated at any time and For any reason not expressly ohihited by state or federal law at the discretion of the company. The company retains the right to change, modify, suspend, or cancel any pokes or practice that pertains to your

NKS

employment without advance notice, without having to give cause or ustihcation to any cinpk)vee. Recognition of these rights is a conditin of employment for anyone accepting a job offer from this company. Any written or oral statements by an agent of this company that contradict these policies are invalid and should not be relied ott; only the president of this compa ii y can a mend this policy. Mandatory Arbitration Clause By signing this application blank, you agree that any controversy or claim arising out of or relating to your application and/or if you are offered and accept employment with this company, your employment contract or breach thereof shall he settled by arbitration administered by the American Arbitration Association in accordance with its applicable rules. You further agree that should you submit any controversy or claim to arbitration tinder this policy, you agree to abide by and perform any award rendered by the arbitrator(s).

typical application blank and asks for information related to a much wider array of attitudes and experiences. BIB items are based on an assumption that these prior behaviors and experiences will he strongly related to an applicant’s future behavior.11 For example, a common BIB item asks applicants to list their favorite subjects in high school. Use of i:he responses to an item such as this assumes that people who preferred English will perform differently on a given job from people who preferred science or math. Whether such an item should he included on a BIB, however., depends on its ability to differentiate the performance of good and poor workers on the job in question. Recent research indicates that BIBs can help to predict job performance in certain instances. For example, a recent research study found that BIB items can account for incremental predictability of key performance variables bed that accounted for by incumbent experience on the job, relevant Big Five personality constructs, and general mental ability.2 Another ariarion to the traditional application blank is the weighted application blank, an application form that is designed to be scored more systematically and is more like the BIB. To develop the scoring system for a weighted application blank, high and low performers who currently work for the company are compared on a variety of characteristics (e.g., education, years of experience, and so on) that were known at the time they applied for a job. Weights are assigned to the degree of difference on each characteristic. A zero may be assigned for “no difference,” ±1 for a small difference, and ±2 for a large difference. The weights are then totaled for each applicant, and the one with the highest score is the preferred choice. Applicants who are judged as minimally qualified on the basis of the application blank will then proceed to the next phase of the selectim process. The next step will often be one or more interviews and/or additional employment testing.

Step 2: Employment Interview Other than application blanks, the interview is definitely the selection technique host often encountered by persons applying for a job in the United States.22 Not

surprisingly, the topic of interviews has generated hundreds of research studies over the past 20 years, covering such topics as verbal-nonverbal behavior, personality characteristics, impression management, interviewer-interviewee similarity, and preinrerview impressions (for a complete review, see Posthuma, Morgenson, and Campion, 2002).23 Because interviews are so widely used to select new employees, they must maximize their potential for identifying qualified persons. Two strategies for making the most out of an interview are (1) structuring the interview to be reliable and valid, and (2) training managers to use the best available interviewing techniques. Types of interviews Employment interviews vary along at least two important dimensions: how structured the interview is and whether it focuses on historical information about the applicant or attempts to place the applicant in hypothetical situations to assess how she or he might respond in the future. An unstructured interview has no predetermined script or protocol. Questions are not prepared in advance; there is no attempt to guarantee that applicants are asked the same questions. Typically, the interviewer does not have a scoring protoLsol either. When used by some highly skilled interviewers, the unstructured interview may lead to useful insights about an applicant. However, substantial research over the past 30 years indicates that structured interviews, regardless of their specific for-. mat, will generally be more reliablid an unstructured mt rviëws.24 Duiing the st ied mTëT7tew, ih iiirrviwrh sasi a thz1ist of questions to ask of all applicants. These questions should have been generated with the aid of a thorough job analysis in order to identify specific types of information sought during the interview. In addition, a scoring form similar to the one shown in Exhibit 8—4 will be used by the interviewer for recording applicants’ responses. The importance of structure in the interview is further underscored by the fact that standardization should lower the possibility that intentional or unintentional biases hel yr the interviewer will affect the outcomes of the process. This, in turn, should lead to less differential impact on women and minorities25 and a better chance for the organization to successfully defend itself if it happens to be sued.26 The second dimension along which interviews can vary is whether they focus on ast ex erience and behavior or on hypothetical future behavior. In recent years, two types of structured interviews avee erd anZf lnepopulirity in the United States.27 The first, the behavioral description interview (BDI), asks applicants to relate actual incidents from their past relevant work experience to the job for which they are applying. BDIs are based on the assumption that the past is the best predictor of the future.25 An example of this type of interview question would be “Thinking back to your last job, tell me about a time when you resolved a conflict with a customer?” Follow-up questions would include “What was the outcome?” and “How did you control your frustration?” The .sjtupional zyzterview (SI) also seeks to identify whether an applicant possesses relevant job knowledge and motivation, but it achieves this goal in a different manner. SI questions encourage applicants to respond to hypothetical situations they might encounter on the job for which they applied.29 For example, an applicant for a pharmaceutical sales position might be asked “If one of the physicians in your sales territory asked you to provide supporting research and other documentation regarding the efficacy of a new drug, how would you go about finding that information?” Responses to this and other hypothetical questions are then scored according to their appropriateness for the job.

C H. A P T E R 8 Selection 2 3 I ;1

EXHIBIT 8-4;0]

STRUCTURED EMPLOYMENT INTERVIEW FORM—EXECUTIVE POSITION Date ______________________________ 19 —

Name ______________________________________________________ Date of birth _______________________________ Phone no. _______________ The Age I >iscrlmination in the Enipli,vmcnr Act and relevant [1- I’ Acts prohibit discrimination with respect to individuals whc, are at least 4)) but less than 65 rears oi age. Present address - City State _____________ How long there? ___________________ Were you in the Armed Fortes of the U.S.? Yes, branch _______________________________ Date _____________ 19 — to ___________ 19 — (Not to be asked in Nc’sv jerses I ______________ 19__.ro ________ 19_._. If nor, why nor? ______ Were you hospitalized in the service? Are you drawing compensation? Yes.._......... No_ Are you einploed now? YesD NoD (11 yes) How soon available? ______________________________________ ‘OChar are relationshirs with present employer? Why are you applying for this position? Is his/her underlying reason a desire for prestige, security. or earnings? WORK EXPERIENCE. Cover isil positions. This information is very important. Interviewer should record last position first. Every month since leaving school should he accounted for. Experience in Armed Forces should be covered as a job (in New Jersey exclude military questions). IAST OR PRESENT POSITION Company From _________ 19 ______ to ___________ 19 _____ How was job obtained? ____________________________________________ Whom did you know there? —____________________________________ Has a pplicanr shown self—reliance in getting ribs? Nature of wnrk at start __________________________________________________________________ . Starring salary Will applicant’s previiius experience be helpful on this job? In what way did the job change? i-las applicant made good work progress? Narur of work at leaving --___________________________________ ._.. . Sal-aty at leaving Host much responsibility has applicant had? Any indication iii a mhiiioit? Superior Title ___________________ What is he/she like? _____________________________________________________ Did applicant get along with superior? - Hos/ closely does (or did) he/she supervise you? What authority do (or did) you have? ______________________________________________ Number of people you supervised What did they do? _______________________________________________ Is applicant a leader? Responsibility for policy formulation Has applicant had managemetit responsibility? To whar e*rent could you use initiative and judgment? Did applicant actively seek responsibility?

Rating [jj Comments: In inak cog final rating. be sore to consider tilt unIv what the applicant can

dii nit also his/her sialiilitv, industry,

perseveranc i-. Iovalt, ahili tv to get a long with others, self-reliance, leadership, ni,itnrits nod niotivation.

< ti iM .

, --—

Interviewer: job considered for:

1. Excessive talking by the interviewer that limits the amount of job-related information obtained from interviewees.

2. Inconsistency in the questions used with applicants, which results in different types of information being gathered from each applicant.

3. Asking questions that are either unrelated or only slightly related to performance on the job.

4. Inability to put the interviewee at ease during the interview, making it difficult to gather spontaneous or follow-up information.

5. Overconfidence in the interviewer’s ahiliry to evaluate applicants, which results in hasty decisions.

6. Stereotyping applicants and allowing personal bias to influence evaluations.

7. Being influenced 1w the nonverbal behavior of applicants.

8. Rating many applicants the same in evaluations, such as superior (leniency error), average (central tendency error), or poor (stringency error).

9. Allowing one or two either good or bad characteristics of an applicant to influence the evaluation of all other characteristics (halo effect).

10. Allowing the quality of the applicants who preceded the present applicant to influence the ratings of the present applicant (contrast effect).

11. Making an evaluation of the applicant within the first minutes of the interview (first impression error).

12. Favorably evaluating an applicant because he or she is similar to the interviewer in some way (similar—to—me error).

Source: Robert D. Gotewood and Hubert S. Feud (1998). Human Resource Selection, 4th ed. (Fort Worth, TX: Dryden), pp. 494—495. Copyright © 1998 by The Dryden Press; reprinted by permission of the publisher.

()verall, the research findings on situational interviews indicate that questions about past experience have higher validity than the future-oriented hypothetical questions. ‘° However, future-oriented questions can also be useful if used properly. I

Training for interviewing Despite recent optimism about the validity of employment interviews, many questions about their effectiveness remain unanswered. For years, there have been significant concerns that interviewers may differ considerably in their accuracy, and the potential for bias always exists, since the interview relies so heavily on personal judgments. Exhibit 8—5 summarizes many of the problems that might limit the accui acy of a typical interview. Errors such as these have been the focus of many training programs for inturvieweis. Generally speaking, however, properly designed training programs do seem capable of reducing many of the errors found in traditional unstructured interviews. This appears to be especially true when the training is used in conjunction with a structured interview format.’2 Training can provide managers with a better understanding of how to ask questions, how to properly record applicants’ responses, and to some extent how to he aware of potential biases. Moreover, recent evidence suggests that when a trained interviewer takes behaviorally oriented notes during the interview, validity can he enhanced.3’ For the past 20 years, the University of Houston’s psychology department has sponsored the 1n tervierping Institute, which offers public workshops in all aspects of employment interviewing. For more information, address e—mail to PsychService@uh.edu.

Step 3: Employment Tests A technique that some organizations use to aid their selection decisions is the employment test. An employment test is a mechanism Icither a paper-and-pencil test or

C H A P T E R 8 Selection a simulation e 4it—.ztempsto measure certain characteristics of individu.. irs. ese charactciistics range from tidssiJchas manual dexterity, to intelligence to personality. It can be very expensive to develop a test to measure these kinds of characteristics. For this reason alone, many employers purchase existing tests from a variety of sources. There are literally hundreds of published tests from which to choose, and some of the more useful tests cost as little as $1 per applicant. Anyone interested in selecting a test for use in personnel selection can begin with the Mental Measurezents Yearbook,•4 which summarizes many of the tests and includes a brief evaluation of their effectiveness. Regardless of whether an organization develops its own test or purchases an existing one, additional costs are associated with using tests in selection. Any of these devices should he validated before it is actually used to make hiring decisions. However, validation studies are expensive if they are conducted properly. The validat n process becomes even more expensive if questions of discrimination arise. In su nstances, the organization is expected to validate its selection devices separately for members of majority and minority groups. Despite the potentially staggering costs associated with employment tests, 1any more than pay for themselves through increased efficiency in selection. In adJition, research suggests that contrary to a perception that applicants avoid applylug for jobs that involve extensive testing, applicant withdrawal from any given Seection system is unrelated to the presence of testing. Various kinds of tests can be used for selecting employees. The type of test that is ultimately used will depend on a number of factors, including the budgetary contraints of the organization, the complexity and difficulty of the job, the size and quality of applicant populations, and of course the knowledge, skills, abilities, and ither characteristics required by the job. In the following sections, several of the ire common categories of selection tests will be described.

Job sample performance tests A job sample performance test requires the applicant actually do a sample of the work that the job involves in a controlled situation. Examples of performance tests include: rogra mm ing test for computer program mers. • Standard driving course for delivery persons. • Standardized typing, word processing, or spreadsheet applications problems for secretarial and clerical help. • Auditions used by a symphony orchestra or ballet company. • Simulated “in basket” tests for managers. A standardized set of memos, requests, and Sc) Ofl, is given to the applicant, who must dispense with them as she or he would if the work were real. Variations of these job sample performance tests are used in many organizations. ;\pplicants are frequently asked to run the machines they would run if they got the oh. Then the quantity and quality of their work are systematically graded and compared with the work of other applicants. Over a large number of selection situations, job sample performance tests have ;‘onstrated some of the highest validities of all selection tests. The presumed superitv of these tests wer other types of selection tools lies in their direct and obvious relationship with performance on the job. However, for this relationship to actually \it, the Content of the pub must he well documented through job analyses. Care must

Source: Reproduced by permtssion. Copyright I 941 renewed 1969 by The Psychological Corporation, New York, NY. All rights reserved.

be taken not to confuse face validity with actual validity. Face validity is how good a test looks for a given situation. Ivlany tests that are valid also look valid, hut that is not always the case. Sometimes a test that appears to have no logical relationship to a particular job may prove to he a valid predictor of performance on that job. Nonetheless, job sample tests are a proven method of selection in many organizations.

Cognitive ability tests Over the years, researchers have identified a large number of specific mental abilities for which selection tests are now available. Perhaps the two best known cognitive abilities are math and verbal. These form the basis for tests such as the Scholastic Aptitude Test (SAT) and the Graduate Record Examination (GRE), to name two. Verbal and math abilities are also measured by a variety of tests developed specifically for use in human resource selection. Still other tests that measure these abilities were developed for use in other areas of psychology but now have been successfully adapted to selection.

Wechsler Adult Intelligence Scale The Wechsler is a comprehensive paper-and-pencil test of 14 sections grouped into two scores. The verbal score includes general information, arithmetic, similarities, vocabulary, and other items. The performance score includes picture completion, picture arrangement, object assembly, and similar items. Wonderlic Personnel Test The Wonderlic uses a variety of perceptual, verbal, and arithmetical items that provide a total score. (Other well-known tests include the Differential Aptitude Test, the SRA Primary Mental Abilities Test, and multiple aptitude tests.)

California Test of Mental Maturity (adult level) This is a test of mental ability administered to groups and scored by machine. Scores are developed from a series of short testS on spatial relationships, verbal concepts, logic and reasoning, numerical reasoning,

Source: Reproduced by permission. Copyright I 933, renewed 1961 by The Psychological Corporation, New York, NY All rights reserved.

memory, and others. The scores are converted to IQ equivalents, and profiles are developed for analyzing performa nec. Other cognitive tests There are numerous other examples of cognitive tests that have used successfully in selection but may not be as well known as measures of verba and math ability or general intellectual ability. For example, Exhibit 8—6 shows an excerpt from a test called the Minnesota Paper Forni Board Test (MPFB), which is a measure of spatial relations. Spatial relations refers to an ability to visualize things on paper as they might appear in actual three-dimensional space. An architect or draftsperson must be able to look at a set of blueprints and clearly know what the actual object (building, house, bndge, etc.) will look like. Similarly, pilots must be able to quickly orient themselves even when they are flying other than straight and level with the groLind. Tests of spatial relations have proved effective for these and certain other jobs. Clerical aptitude is still another cognitive ability that has proved useful in selecting people for a wide array of jobs. Exhibit 8—7 is the first page of the Minnesota Clerical Test, one of the more popular measures of clerical aptitude. This test requires applicants xo rapidly check numbers and names for accuracy. The ability to rapidly compare entries such as these is a good predictor of many types of job per formance, especially in secretarial and clerical jobs.

They include choice reaction time, speed of limb movement, and nger dexterity. One of these is the O’Connor Finger and Tweezer Dexterity Test (see Exhibit 8—8). The person being tested picks up pins with the tweezer and row by row inserts them in the holes across the hoard with the hand normally used. These tests are used for positions with high manual requirements, such as assembling radio or TV components and watches.

Personality inventories and temperament tests Potentially, the least reliable of the employment tests are instruments that attempt to measure a person’s personality or temperament. The most frequently used inventory is the Minnesota Multiphasic Personality Inventory. Other paper-and-pencil inventories are the California Psychological Inventory, the Minnesota Counseling Inventory, the Manifest Anxiety Scale, and the Edwards Personal Preference Schedule. A more optimistic picture of the value of personality inventories comes from efforts to specifically construct a measure for a particular job. That is, some of the disappointing results previously obtained with personality inventories in selection could be attributed to a mismatch between the test and the situation in which it was being used. 6 When personality tests are constructed to measure work-related characteristics such as achievement_and ability, they can show good validities.3 A different approach, not as direct as the se f-reporting inventory, utilizes projective techniques to present vague stimuli. The reactions provide data Ofl which psychologists base their assessment and interpretation of a personality. The stim1ii are purposely vague to reach unconscious aspects of the personality. Many tech niques are used. The most common are the Rorschach Inkblot Test and the ihematic Apperception Test. The Rorschach Inkblot Test was rst described in 1921. The test involves 10 cards, on each of which is printed a bilateral symmetrical inkblot similar to that illustrated in Exhibit 8—9. The person responding is asked to tell what he or she sees in the inkblot. The examiner keeps a verbatim record of the responses, the time taken to make the responses, emotional expressions, and other incidental behavior. Then a trained interpreter analyzes the data and reaches conclusions about the pcrsonality patterns of the person being examined.

Polygraph and honesty tests Another method currently used 1w some employers to rest employees is the polygraph, sometimes erroneously called a lie detcctoi: The polygraph is an instrument that records changes in breathing, blood pressure, pulse and skin response associated with sweating of palms. and rhen plots these reactionS

on paper. The person being tested with a polygraph attached is asked a series of questions. Some are neutral, to achieve a normal response; others are stressful, to indicate a response made under pressure. Thus, the applicant may he asked, “Is your name Smith?” Then, “Have you ever stolen from an employer?” Although originally developed for police work, the polygraph had become an extremely popular selection tool by the mid-1980s. It has been estimated that, prior to 1988, nearly 2 million polygraph tests had been administered each year by private employers in the United States.39 This popularity was understandable because on-the-job crime had increased tremendously; it was estimated that dishonest employees cost employers about $65 billion per year in theft and other acts of dishonesty. 4° Since a polygraph will cost only about $25, it seems like a small investment to help reduce dishonesty in the workplace. In recent years, objections have been raised to the use of the polygraph in per •rne selection. There are concerns that it is an invasion of an applicant’s privacy and that its use can lead to self-incrimination, which would be a violation of the Fifth Amendment to the Constitution. However, the mot serious question concerning the polygraph was whether it was, in fact, a reliable and valid method for predicting on-the-job dishonesty. In a recent quantitative review of polygraph tests, it was reported that electrodermal measures correctly idenried 76 percent of participants with concealed knowledge, indicating that 24 percent of subjects were able to conceal information without detection.4’ These concerns became serious enough that the federal government passed the Employee Polygraph Protection Act of 1988. This legislation has made it illegal for most private organizations to use the polygraph as a selection device. Government agencies and certain contractors for the Department of Defense and the Department of Energy are exempt from the act. In addition, private employers whose business involves security and controlled substances are also allowed to continue’ using the polygraph. Finally, it is still legal to use the polygraph a hart of an ongoing investigation of dishonesty as long as the individual employee’s rights are safe-guarded.42 Organizations searching for an alternative to the polygraph are increasingly turning to paper-and-pencil tests of honesty. Estimates are that 5,000 to 6,000 rms in the United States now use these during screening.4 The two most common types of preemplovirwnt honesty tests are overt integrity tests and personality-based integrity

tests.44 Overt integrity tests ask more direct questions to assess dishonest behavior, as well as gather a history of theft and other illegal activities. In comparison, personality- based integrity tests aftempt to assess an individual’s predisposition toward deviant and disruptive behavior.4 Although some critics believe that preemployment honesty tests generate an unacceptable level of false positive results (i.e., a job candidate is incorrectly classified as a potential thief when, in fact, he or she is not),46 several researchers have provided evidence that certain honesty tests have acceptable levels of validity and reliability. For example, a comprehensive meta-analysis on over a half million subjects reported that honesty tests are valid for predicting counterproductive behaviors on the job such as theft, disciplinary problems, and absenteeism. Tn addition, this study reported that lob candidate scores on honesty tests could also he used to predict future supervisory ratings of job performance.4

Step 4: Reference Checks and Recommendations If you h ev ppliedf?ajF,y ere probably asked to provide a list of people whom the organization could contact to get information about you. These references might have been work-related (such as a former supervisor or co-worker), or they might have been personal (such as friends, clergy, or family members). In either case, to the extent that you could, you provided the organization with a list of people who you believed would generally speak favorably about you. Rarely, when given the opportunity, does someone knowingly include the name of a reference who will give a negative impression to the new organization. This built-in bias in favor of the applicant is precisely the reason that general references have often been criticized as sources of useful information. Many argue that they will seldom provide an organization with meaningful information about applicants. Equally important, however, are genuine concerns over the legality of asking for and providing such information. Giving out confidential information about a former employee could he construed as a violation of the employee’s right to privacy, and giving a negative recommendation opens the reference up to a defamation lawsuit.45 Most reasonable people would agree that managers should not be allowed to lie about a former employee or to be malicious while providing reference information. On the other hand, not all references can be positive, and managers should not have to fear being sued simply for being honest about a former employee. In army event, fears of being sited have led many managers to refuse to provide references for former employees. The trend in this direction has also caused orgaruzations to include explicit statements in their employee handbooks about corporate policies on checking references. Rather than risk a lawsuit, managers are instructed to give out only verifiable kinds of information such as dates of employment and job title. Under these circumstances, it is almost certain that references will be of little or no value to the hiring organization except as a check on the accuracy of information contained on the application blank. Organizations must also he wary of any policy which suggests that all references should he neutral in nature. Employment attorneys are cautioning organi7a- tions to he aware of a new problem which they are labeling “negligent referrals.’ If an organization is aware of important negative information about a former emplo) cc and fails to reveal this information during an inquiry by a prospective employer, it might find itself in “legal hot water.”4 At the present time, the legal status sur rounding reference-checking and providing recommendations is just not clear at all. Perhaps because references have become such dangerous business, at least 32 states have passed laws that give managers some immunity from being sued for providing good-faith, job-related information about their employees.50 Most of these laws are, however, too new to determine whether they will he effective.

Step 5: Physical Examinations Careful adherence to the Americans with Disabilities Act indicates that physical examinations can he used to screen out unqualied individuals hut generally should be required only after a conditional offer of employment has been made. However, if an organization is going to use such examinations, all individuals who arc conditionally offered employment should he required to have one. These requirements do not mean that an organization must hire an individual with a disability if that person cannot perform the job. They do, however, help to protect the rights of individuals with disabilities who

HRMEMO In a recent Gallup poll commissioned by the

Institute for a Drug-Free Workplace, a significant

majority of Americans supported drug

A note on drug testing Perhaps no other selection practice elicits a more emotional reaction than an organizational drug-testing program. A recent survey by the American Management Association indicates, however, that approximately 80 percent of American corporations are now using drug tests.2 Moreover, the Department of Transportation mandates both drug and alcohol testing for virtually all employers ‘ho have truck and delivery drivers with commercial licenses. Why is there such a strong emphasis on alcohol and substance abuse in the workplace? Consider the following statistics compiled from a number of sources by the U.S. Department of Labor. It is estimated that there are 14.8 million illicit drug users in the United States and three-quarters of these persons are employed either full- or part-time. More than 14 percent of employed Americans report being heavy drinkers. More than one in three workers between the ages of 18 and 25 are hinge drinkers (i.e., five or more drinks on one occasion). Alcohol abuse costs U.S. corporations 500 million lost work days each year. S4 Coupled with estimated losses of $120 billion annually attributable to drug abuse,55 the costs to business are staggering. The reliability of drug tests is, however, a major concern, for at least two reasons. First, even when a particular drug test is deemed very accurate if typical em •ymen test standards are applied, there is a potential for the test to yield a questionably high number of false positives—the test indicates that the applicant is using illegal drugs when in reality he or she is not.56 Second, the personal consequences of heing falsely labeled as a drug user are more severe than those of a false positive on other types of selection tests—a math test, for example. In the former case, the imPlication is that the applicant has broken the law; in the latter case, the implication is simply that the applicant has more math ability than he or she has in reality. Also, the legality of drug-testing programs has not been universally established, although many organizational programs have withstood challenges in court. Thus, it is not possible to determine whether any particular drug-testing program that doesn’t fall under a federal mandate will, in fact, be legal. However, the best guess is that most good-faith drug testing programs will he legally acceptable if the s organization has taken steps to: • Inform all job applicants of the organization’s drug-resting screening program. • Establish a high-quality control testing procedure with a reliable testing laboratory. • Perform any drug tests in a professional, nonthreatening manner. • Keep all results confidential.

DAY I A. Orientation of approximately 12 ratees. B. Break up into groups of four or six to play management simulation game. (Raters observe planning ability, problem-solving skill, interaction skills, conimunication ability.) C. Psychological testing— Measure verbal and numerical skills. I). Interview with raters. (Ratees discuss goals, motivation, and career plans.) E. Small-group discussion of case incidents. (Raters observe condence, persuasiveness, decisionmaking flexibility.)

DAY 2 A. Individual decision—making exercise—Ratees are asked to make a decision about Sonic problem that must be solved. (Raters observe factnding skills, understanding of problem—solving procedures, a rid propensity for taking risks.) B. In-basket exercise. (Raters observe decision making under stress, organizing al)ility, memory, and ability to delegate.) C. Role-playing of performance evaluation interview. (Raters observe empathy, ability to react, counseling skills, and how information is used.) D. Group problem solving. (Raters observe leadership ability and ability to work in a group.)

DAY 3 A. Individual case analysis and presentation. (Raters observe problem-solving ability, method of preparation, ability to handle questions, and communicatIon skills.) B. Evaluation of other ratees. (Peer evaluations.)

The particular types of employment tests that are used in an organization vary with. the type of employee being hired. Many of the techniques that have been discussed in this chapter (the interview, for example) are common to most occupations. Others, such as cognitive ability testing, are used with a wide ass&trnent of jobs and occupations ranging from blue-collar to managerial positions. However, because of the costs associated with a had decision and the complexities of managerial work, organizations frequently expend more time, effort, and money hiring middle- to upper-level executives than they spend hiring for positions lower on the organizational chart. One of the best-known multiple selection methods used for these purposes is the assessment center. The assessment center was first used by the German military in World War II. The Office of Strategic Services (OSS) in the United States began to use it in the mid-1940s. American Telephone and Telegraph Company (AT&T) introduced the assessment center to the world of business in the 1950s. Since 1956, AT&T has used assessment centers to evaluate more than 200,000 prospective and current employees.7 An assessment center uses a wide array of methods, including several interviews, work samples and simulations, and many kinds of paper-and-pencil tests of abilities and attitudes.’8 Exhibit 8—10 presents briefly a typical 21/2 day assessment center schedule. Most.assessment centers are similar in a number of areas: 1. Groups of approximately 12 individuals are evaluated. Individual and group activities are observed and evaluated. 2. Multiple methods of assessment are used—interviewing, objective testing, projective testing, games, role-playing, and other methods.

3. Assessors are usually a panel of line managers from the organization. They can, however, be consultants or outsiders trained to conduct assessments. 4. Assessment centers are relevant to the job, and thus have high appeal because of this relevance. As a result of assessees participating as part of a group and as individuals, completing exercises, interviews, and tests, the assessors have a large volume of data on each individual. Individuals are then evaluated on a number of dimensions, such as organizational and planning ability, decisiveness, flexibility, resistance to stress, poise, and personal styles. The raters’ judgments are consolidated and developed into a final report. Each assessee’s performance in the center can he described if the organization wants this type of report. Portions of the individual reports are fed back to each assessee, usually by one or more members of the assessment team.

. Because it is an integrated attempt to measure a variety of characteristics of anagers, the assessment center report permits the organization to make a number of determinations about human resources: • Qualifications of individuals for particular positions. • Promotal,dity of individuals. • How individuals function in a group. • Type of training and development needed to improve behaviors of individuals. • How good assessors are in observing, evaluating, and reporting on the performance of others (assessees). Overall, the results of research on assessment centers have indicated that they are a valid way to select rnanagers9—hut they are not without disadvantages. Generally speaking, well-designed assessment centers are a relatively expensive way to hire managers. As such, they are not a reasonable alternative for many smaller organizat’ions. rnoreover, there are circumstances in which less costly and less admin tratively complicated techniques are just as effective in managerial selection.60 erefore, they are frequently not the technique of choice even for organizations that have the resources to utilize them. Once an organization has made a commitment to investigate what types of selection devices it will use, it must attempt to evaluate whether its eftorts will he worthwhile. Ultimately, a large part of the answer to this question involves the utility of the selection process. Utility refers to the degree to which using a selection system improves the quality of the individuals being selected by the organization.6’ Utility has two related components. Statistical utility is the extent to which a selection technique allows an organization to better predict who will he successful. Organizational utilit) which is dependent, in part, on statistical utility, is a matter of costs and benefits. In other words, answering the question whether the selection system should he developed arid used is ultimately an issue of whether it saves the organization more money than it costs. Generally speaking, an analysis of the costs versus the benefits ot selection requires estimates of the direct and indirect costs associated with the selection systeni. I)irect costs include such things as the price of the tests, the salary paid to an interviewer,

COST-BENEFIT ANALYSIS FOR

THE SELECTION DECISION

HR JOURNAL CEO SELECTION: SUCCESSION PLANNING

AND THE CRYSTAL BALL

Corporations differ in terms of their preference for hiring replacement managers from within their own ranks or from outside the organization.When it comes to picking a new CEO, however, all bets are off. The choice of an organization’s highest ranking manager depends on many factors, but two of the most important are the current CEO and his or her relationship with the company’s board of directors. Research suggests that an outsider will be appointed CEO more often when there is a high percentage of outside directors on the board. Outsiders also become the leading candidates in organizations that intend to delegate more power to their CEOs. Interestingly, outsiders are often asked to infuse an organization with new direction and leadership when the company is facing a financial disaster.Why are outsiders seen as the salvation of a dying organization? Current thinking suggests that outsiders have not been “brainwashed” by a corporate culture that apparently needs to be changed.The outsider is expected to bring a fresh perspective and be willing to question everything and anything about the organization’s past way of doing business. Then, of course, there is CEO succession in the Magic Kingdom. Michael Eisner is the CEO of Disney who took over a $2 billion company in 1984 and has helped make it worth more than $25.4 billion today. Much of his success is credited to dramatic shifts in strategic thinking. In 1984 only

I percent of Disney’s income came from movies and only 9 percent from overseas markets.Today, 43 percent comes from movies, and overseas income accounts for 23 percent. As the story goes, Eisner hurriedly made a list of possible successors and handed it to his wife minutes before he was supposed to undergo risky heart surgery. As it happened, the list was unnecessary and he has never revealed its contents. The selection process for a new CEO is, therefore, qualitatively different from most other forms of selection. It is potentially influenced far more by political dynamics and idiosyncratic characteristics of the current CEO and the board of directors.Yet people generally agree that the right choice for CEO may never have been more critical to a corporatior’s success than it will be in the global marketplace of the next century. Sources: “Disney or Doesn’t H& Face Value’ (January 2002), The Economist, pp. 61—62: David Jackson and Richard Corliss (February 2001), “How to Build a Better Mousetrap:’ Time. pp. 40—42: Kenneth A. Borokhovich. Robert Parrino, and Teresa Trapani (September 1996), Outside Directors and CEO Selection,’ Journal of Financial and QuantitativeAnalysis, pp. 337—355:John Huey (April 7, 1995),”Eisner Explains Everything,” Fortune, pp. 44—68: Beni Lauterbach and Jacob Weisberg (1996),’Top Management Successions: The Choice between Internal and External Sources,” Ibor, pp. 103—117; Noel Tichy (Summer 1996),”Simultaneous Transformation and CEO Succession: Key to Global Competitiveness,” Organizational Dynamics, pp. 45—59.

and the equipment used in a work sample test. Indirect Costs include changes in public image associated with implementing procedures such as drug testing. The organization must also estimate how much money it will save 1w hiring more qualified employees using the selection system. These savings can COIiiC from improved outcomes such as higher levels of quality or quantity of output, reduced absenteeism, lower accident rates, and less turnover. Sonietiiiws, when an organization’s managers see how costly systematic selecti ofl can be, they wonder whether it will ever have henefirs The answer to this ha - sic question depends on many factors. 1ut valid selection procedures can yield enormou benefits, especiall’ in situations where the direct and indirect costs of hiring a poor performer are high. Imagine the costs associated with a single wrong hiring decisioii when airlines are selecting pilots. Pilot errors can cost the company millions

different jobs, he would use the following selection process. • Managers: screening interview, application blank, interview, reference check. Professional and technical: screening interview, application blank, interview, refrrence check. • Clerical: screening interview, application blank, interview, tests. • Skilled: screening interview, application blank, tests, and interviews for marginal ) applicants. • Semiskilled: screening interview, application blank, tests, and interviews for marginal applicants. Clark and Ed hired the managers. Clark himself hired the professionals. While these groups were being hired, an HR specialist administered the tests to the clerical employees and supervised the reference checks for the managers and professionals.The HR specialist hired the clerical employees with help from the managers and professionals for the clerical personnel who were to be under their direct supervision.

different jobs, he would use the following selection process. • Managers: screening interview, application blank, interview, reference check. • Professional and technical: screening interview, application blank, interview, reference check. Clerical: screening interview, application blank, interview, tests. • Skilled: screening interview, application blank, tests, and interviews for marginal applicants. • Semiskilled: screening interview, application blank, tests, and interviews for marginal applicants. Clark and Ed hired the managers. Clark himself hired the professionals. While these groups were being hired, an HR specialist administered the tests to the clerical employees and supervised the reference checks for the managers and professionals.The HR specialist hired the clerical employees with help from the managers and professionals for the clerical personnel who were to be under their direct supervision.

Then Clark and the HR fl specialist administered the w tests to skilled and bu semiskilled employees. Clark las hired the clearly well- so qualified semiskilled sp employees, except in ap marginal cases. Candidates bu received a review and were co interviewed by the ga managers to whom they ne would report.A similar th process was used to hire for the semiskilled employees. of Since there were few cle choices among professional- ale

technical and skilled co employees, it was more prc efficient not to involve the de new managers. api Several problems cat developed. Clark and Ed had ne no trouble agreeing on 20 managerial candidates. But pe in 18 additional cases, Clark adj felt he had found better am candidates, whereas Ed rec wanted more Chicago wa people that he knew.Among coi Clark’s choices were many em more qualified minority and obj female managerial 501 candidates than Ed wanted am to accept. In the end, they po compromised. Ed gave up co half his choices to Clark, Loi and Clark did likewise. Ed There were also qu pr’oblems in the skilled dis professional categories.

These people generally wanted more pay than the budget called for, And the last 20 percent hired were somewhat below minimal specifications. Clark appealed for a bigger budget, given these conditions.The home office gave him half of what he needed. He had to generate the other half by paying less for the bottom 20 percent of the semiskilled and clerical employees. Clark alerted Ed to the probable competence problem, promising that he’d begin developing a list of qualified applicants in these categories in case they were needed. In sum, Clark hired the people needed within the adjusted budget, on time, and generally with the required specifications. He was able to make a contribution to equal employment opportunity objectives by hiring somewhat more minorities and women than the total population, less than he could have and less than Lois wanted, but more than Ed wanted. All were qualified. No reverse discrimination took place.